Buying A Foreclosure Without A Buyer's Broker - ARE YOU KIDDING?
Buying any property without individual, dedicated representation is not the wisest thing to do. The listing agent has their allegiance to the sellers and they are committed to getting the highest price possible.
When dealing with a foreclosure, or any REO property, it becomes even more important as many times the listing agent hasn't even seen the property, and all of the field work would have been done by property managers or assistants.
Only a dedicated Buyer's agent, contracted to the buyer will fight and protect your interests all the way to closing.
Anyone wishing to comment, please follow this link back to Candice's original blog
Buying a foreclosure is risky enough without the protection and assistance your own buyer's broker can provide.
Foreclosures offer few, if any assurances from the seller.
You'll sign away more than a few sticks from your 'bundle of rights':
Title may not be clear--or seller may only provide a limited warranty deed.
There may be mechanic's or workmanship liens recorded against the property.
Outstanding sewer or road assessments may add thousands of dollars to your 'bottom line'. (Many REO companies will ONLY pay the accrued fees DURING THEIR OWNERSHIP--not prior to their acquisition)
HOA liens on the property that preceded the seller's ownership, but were not cleared--may not be. (Check the conditions in those bank addendums!)
There may be transfer fees for septic tank, HOA etc that seller will not pay or contribute toward paying.
There could be unpaid utility bills that 'someone' needs to clear up.
The property may have not been surveyed properly.
The lot may have been illegally split from a larger parcel, and a well or septic tank connected to the home may now no longer be on the same lot!
There may be unpermitted construction or renovation.
The property may not be insurable.
There may be a past history of pest infestation.
Utilities may not be on (and nowadays, appraisers REQUIRE them to be) and seller will not turn them on.
and so on, and so on . . .
The seller's agent may have hundreds of these listings
they have never personally 'walked' or viewed. Often, assistants photograph, clean, rekey and put up signs.
To the seller, the 'asset' is just a number. But to you, it's going to be your home for many years!
Your buyer's broker, on the other hand, can help you:
- Obtain building permit information
- Obtain septic or well permit information
- Investigate whether there are clouds on title
- Find out about back HOA fees or fines
- Find out if there have been any recent lot splits - and confirm City/County approval
- Obtain a quote from a local insurer with known history of the property
- Connect with experts to inspect the property, septic tank, well
- Connect with utility company to temporarily turn on utilities for inspections--and ensure no outstanding bills for service will require payment
and help investors perform due diligence PRIOR TO OFFER on properties (such as HUD) that will NOT REFUND earnest deposit for investor purchasors--EVEN when they are within an inspection period.
A buyer's agent can be your most powerful defense against an unwise real estate investment.
Don't pull the trigger without one!
Bullhead City 86442, Fort Mohave 86426, Mohave Valley 86440
Arizona Real Estate On The Beautiful Colorado River ~~~
http://facebook.com/NextWaveREI
866-228-2643
Candice A. Donofrio, Owner/Designated Broker
Certified Commercial Sales Specialist
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