Foreclosure and Short Sale Buying 101 | Destin and Hwy 30A
Are you thinking of purchasing a Destin Florida or Hwy 30A Foreclosure or Short Sale? If so, you have come to the right place. I have sold a lot of foreclosures and short sales. I mean alot! I have been on both sides of the transaction and I am writing this blog to help you make a good buy.
Click the link below to see a current list of Destin and 30A Foreclosures and Short Sales For Sale.
Below are some tips to help you!
1. When buying foreclosures, you may hear the term "highest and best". If you are asked to submit your highest and best offer, this means there are multiple offers. Ask your agent for a CMA "Comparative Market Analysis" report. Forget about the other offers and offer the maximum amount that you feel comfortable with. You are no longer negotiating with the bank, you are now competing with other buyers. If you low ball at this point, you will probably lose. Also, do not get caught up in the game and bid too much. You have to understand the values and look at the comparable recent sales!!!!!
2. If you are on a strict time line, do not buy a short sale. I love short sales! I have seen many of my clients get amazing deals on short sales. Here is the problem, SHORT SALES ARE VERY UNPREDICTABLE. If you have a strict time line, you should probably avoid short sales. For example, if you are doing a 1031 exchange and time is sensitive, a short sale might not be for you. Also, if you have to have a home to live in by a certain date, you may want to look at other options. If time is sensitive, short sales can be very frustrating.
3. Buyers using financing will have better luck at short sales than REOs "Bank Owned". Bank owned foreclosures are very competitive. In most cases, they go to the cash buyer. If you are looking to get an amazing deal, but you are purchasing with financing, a short sale may be your best option.
4. Be ready to move Fast! Get your ducks in a row. Make sure you have a pre-approval letter or proof of funds handy. Have your agent send you instant updates on new foreclosures and short sales. Start studying the comps and know your limits. If you can move fast, you will have a major advantage. Try to get there before all of the other offers start coming in. This will enable you to negotiate directly with the lender and not complete with other buyers.
5. Right to Inspect - Make sure you have the right to inspect and the ability to exit the contract if you are not happy with the results. If a competing offer beats you on this, let them have it. When you purchase foreclosures and short sales, you are buying AS IS. This means is not required to make any repairs. If there are major issues, you need to be able to move on or negotiate.
6. Get it in Writing! Banks love to negotiate verbally or by email. Most banks will always counter with bank addendums. It is critical that you sign all addendums quickly and have the bank sign all paperwork. If a higher offer comes in while you are waiting on the bank signed paperwork, the bank may accept the higher offer. Do not rely on verbal communications. The deal is not done until the contract and addendums are signed by all parties.
I hope this helps and please call me if you would like to find a great deal!