With the large number of foreclosures and short sales on the market, there are chances of landing a sweet deal very easily. But unlike the most common belief, these short sales and foreclosures often come along with a raft of other issues. As per my experience that I have gained while working as Temecula short sale agent, the market is flooded with such properties and the only people who are selling their properties in such declining markets are the ones who are certain to sell. Keep in mind there are hundreds of these sellers but there is no compulsion to buy these properties. Every buyer should consider some common mistakes made in short sales or foreclosures. I am going to discuss these in detail so that buyers can avoid these potential pitfalls.
Ignoring Home Inspection
It is important to setup a date for the home inspection prior to purchasing the property. As a short sale expert working in Temecula, I advise to get your home inspected with the help of a professional and get an estimate for all the problems. Usually your inspector will note down all the issues on home inspection report and it is best to ask for an estimate for repairing or you can check online resources for help. Most of the home owners underestimate the cost of renovation that they have to pay for the house.
Allocating Insufficient Time for Process
All buyers must know that foreclosures and short sales often take a longer time in closing the deal as compared to traditional homes. One of the most important factors is getting approval from the seller’s lender for selling the house at a price less than what the seller owes. Moreover foreclosures and short sales have lead to huge losses for banks and that’s why even banks are bit slower in responding to these properties. Keep in mind that it will take some time in settling the existing lien and the bank may put a hold on the process for months.
Insufficient attention towards legal and insurance information
It is always advised to do some extra research before finalizing a property. A foreclosure indicates unpermitted innovation or something like flood plain condition. In my career of working as short sale agent in Temecula, I have seen buyers who later have to pay thousands of dollars because the property was in flood zone. Such circumstances can be avoided with proper research. Make sure that every single piece of renovation is permitted by the city authorities and local planning agencies.
Avoiding problems with property
No one would elect foreclosure and short sale as an option to leave their house. I have been working as an expert short sale agent in Temecula for several years and it is quite common that people will take out frustration on the property before leaving. Some of the most common issues observed in empty foreclosures include leaks, termites, molds, filth and worst; thieves. At the time of purchasing the property, the seller has to start from ground zero with the first step to get disclosure for the property. Some important details are not revealed by banks like the type of material, any terrible defects in the house structure etc. Any house that is 15 to 20 years old will require a lot of maintenance work on your part.
I have a rich experience of working with different buyers as a Temecula short sale agent and nowadays, buyers are taking more pain inspecting home and the neighborhood quite thoroughly. With all the important considerations, it may result into the best way of landing a nice house for you.
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