1. Don't get caught up in a bidding frenzy. Banks may “under price” their offering, hoping to generate multiple bids and sell quickly. Don't get overexcited - there's another foreclosure to bid on tomorrow!
2. Don't underestimate your repair costs. Carefully read the inspection report, and factor in an additional 10-20 percent of the purchase price for unexpected repairs.
3. Don't ignore the "comparables" for similar properties in the area. If there are abundant foreclosures in the neighborhood, be sure that you have the latest home prices to compare against, and keep your offer at or below those figures.
4. Don't go house hunting in a neighborhood full of foreclosures. If you're buying for the short-term because you may relocate or upgrade in a few years, don’t focus on a neighborhood with a lot of home foreclosures. These properties may continue to decline in value, meaning you may have to sell at a loss in the near future. Protect your investment by purchasing the only foreclosed home in a better neighborhood.
5. Do secure home loan pre-approval. You'll need to move quickly once you've found your ideal property. With your real estate agent as your field guide, your hunt should be successful!
Mike Morgan
Coldwell Banker Real Estate
"For Every Move You Make"
Whether you want to buy or sell a home in Miami, Palmetto Bay, Pinecrest, Dadeland Walk, South Miami, Coral Gables or Cutler Bay, you can depend on the Morgan team of realtors to assist you every step of the way during your real estate transaction.
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