Many local and international investors are looking forward to buying an attractive pieces of Real Estate in Greater Cleveland.
Public's perception of price tags on Cleveland Real Estate is simple:
Everything's on a huge sale!
After browsing numerous web sites which list foreclosueres, pre-foreclosures and auction sales, potential investors very often get a wrong idea that you can buy a good investment property in Cleveland for around $10,000.
Reality is a little bit different. As a Real Estate broker who consults local and international home buyers in Cleveland, I do not want my clients to get surprised by unexpected or undisclosed problems or circumstances. Surprises should not accompany any Real estate transactions.
One of the reasons why apparently good bargains are not such great deals is that the properties selling for low pirces are usually in a very bad shape.
Many investors are looking for Shaker Heights and Cleveland Heights as for good communities to buy Real Estate. That's indeed a very good choice. However, home buyers in Shaker Heights and Cleveland Heights should be aware of Point of Sale Inspection.
There is a difference in assuming POS violations by the home buyers in Cleveland Heights and Shaker Heights. The difference is not only in escrow amount. Cleveland Heights requires 125 % of estimated repair amount to be held in escrow, while city of Shaker Heights asks for 150 % of estimated cost to be escrowed.
The difference is also in the procedure. Shaker Heights expects the home buyers to hire their own contractor who should be registered with the City of Shaker Heights, to make a detailed estimate of repairs needed to bring the property up to the Code. This estimate should be presented to the Building Department of the City of Shaker Heights for approval.
Cleveland Heights makes its own estimate of escrow amount which should be brought to the closing.
In both cities the home buyer who assumes the POS violations should be prepared to bring on closing table whatever is needed to buy the house in Shaker Heights or Cleveland Heights plus escrow amount required by the City. After authorized completion of all repairs the owner can claim the funds from escrow account.
When you pay cash for your house in Shaker Heights and Cleveland heights, this POS escrow requirement does not sound scary. However if you leverage your purchase it may become a problem. We will discuss how to finance the home purchase in POS municipalities in the future posts.
Please call Svetlana 216-548-4663 or e-mail to: Realty@Local-n-Global.com.