Don't Miss the Boat! 3 Simple Rules to Win When Buying Foreclosures and Short Sales - Buying Homes in Dawsonville, Dahlonega, and Gainesville, GA
Everybody is looking for a deal and when it comes the current market, you may now be ready to find your "dream home". The current real estate market offers foreclosures, REO's and short sale homes at great prices. Sometimes I still shake my head and do a double take when I check tax records and find that the home that I am showing has an assessed value of 349k, but my clients have won their offer of $265,000. There is no doubt, there are some great deals out there!
I have been working with many buyers now that spring has sprung and they are spending a lot of time online searching homes. We are all dissappointed when I find the homes they would like to view are pending sale and sold. This is part of the new market when it comes to drastically reduced pricing; the opportunities can move fast!
Rule 1) If you really love the house and want it, but have some concerns about the roof, basement sinking, damaged siding or anything else that would prevent you from taking the final leap.... Make sure your agent states that you require 10-14 days at least for Due Dilligence and get the ball rolling. These terms allow you to take your time, hire an inspector and make sure that you want it. Thanks to the United States' Securities Act of 1933, due dilligence means that you are protected and can back out within this time frame. Plus, the home is under contract and you won't miss the boat!
In the local market here in Dawsonville, Dahlonega, Gainesville and Cumming, Georgia, I am finding that most lenders require that you submit a letter of pre-qualification when submitting a contact on a foreclosed home. Simple enough, banks are busy and want to make sure that when reviewing contacts, you are simply qualified to buy the home. These letters are simple to obtain from your bank of lending institution. Give them a call, they will know exactly what you need.
Rule 2) Obtain the letter of pre-approval if you're a serious buyer. This letter means that you're ahead of the game and best way to insure that you don't "miss the boat" is to obtain the letter prior to starting your home search to insure that when you run up on the home of your dreams, offers aren't being already being submitted before you can get chance to sit down with the lender.
Great deals don't last and with the spring market blooming, I am seeing homes move faster than they have in a while!
Rule 3) If you really want the house, please search the tax records and view the value. Yes, there are deals out there that are once in a lifetime, but that doesn't mean you are dealing with suckers. Bank owned properties are reviewed extensively and many broker price opinions are completed prior to the home even being listed. What does this mean? It means that the bank knows exactly what the current market price is and if listed for $124,000, you probably won't sail away with an offer of $70,000. I always encourage a good negotiation, but you if you want a quick turn around time on acceptance, keep your offers practical. Too many times, lenders will sit on your offer and wait for a better offer.... And usually, it won't take long for multiple offers to follow.
These are some basics that I have seen many times in the current market that are keeping buyers from getting the home they want. Keep these rules in mind when starting your home search to insure that you have speedy success and avoid foreclosure headaches.
Serving Dawsonville, Cumming, Gainesville and Dahlonega, Georgia.