Here in Del Norte County, investors are out there snapping up great deals in real estate, usually "as is" properties, and usually with cash. These are knowledgeable buyers who don't need/want the protections afforded the first time home buyers or those who need to get a loan. They don't ask for an appraisal.
But how about the home buyers who purchase these "great deals" who plan to live in them? Are they really getting a great deal? If it's a REO, definitely get a home inspection done before you go forward with the purchase. There can be so many things wrong with the house, and it could cost thousands of dollars to fix.
Now, trying to get a loan for your purchase can really work in your favor if you don't know what you are doing. The lender will make you go through hoops you might not appreciate at the time, but it's for your own good. If you lose the deal because major defects are found, you are much better off in the end.
But the last line of defense is the appraisal.
- if you try to get a loan, the lender will want an appraisal. If it doesn't appraise, you come out the winner. You would have paid too much for the property.
- but IF YOU PLAN TO PAY CASH, spring for an appraisal no matter what anyone says. You may be paying too much!!
Comments(3)