Coldwell Banker Chicora Advantage Blog

We all want a Good Deal, but if it seems “Too good to be true” - Think Twice

Posted: June 28, 2017 by Rod Smith

Have you ever been tempted to buy the Red Hot  Myrtle Beach real estate deal?  This article discusses some of the homebuyer’s pitfalls when thinking of buying “inexpensive” homes and how to avoid falling into the traps.

A Deal That's Too good to be true - Think Twice


Skipping the home inspection


Make sure you don't skip the home inspection. Coldwell Banker Chicora Advantage recommends that you ask for repair cost estimates whenever an inspector identifies an abnormality or do your due diligence. You are given a certain inspection period to check your home. While reducing the period of inspection may give you leverage in winning the bid,  make use of this time and process to find out what you are up against.


 Ignoring property problems


When homeowners are dealing with foreclosure, in most cases they are being forced to leave their homes. Some avenge their anger on these homes or totally ignore the safety and structural issues that need to be addressed, and allow for them to fall into disrepair, or in some cases actually inflict intentional damage. Empty foreclosure real properties, pose their own challenges.  Some may become victims of matters arising from negligence including theft, roof issues, filth, and pests- since the real estate property may have remained vacant for a long period of time before being bought.


Ignoring the insurance and legal information


It is obvious that a disclosure statement indicates whether a home is in a floodplain situation or may have experienced some unpermitted renovations. This is because properties owned by banks may sell the houses “as it is” without any form of disclosure and hence buyers will be required to conduct a more thorough research on the condition of the home. Make sure that all the renovations done have been legally approved and permitted. In case none of this has been met, and in case there seems to be an anomaly, the state can cite you.


Be patient when dealing with Short Sales and Foreclosure


Most foreclosure and short sale home buyers must be aware that the sales will not likely close as soon as they would for traditional homes. There may be multiple bids and the lender of the short seller must give approval of either the terms of foreclosure or short sale cost which is below what the seller owes. Even after this, financial institutions may be waiting to see the max offer they can receive to recoup the most possible therefore becoming very slow to respond, sometimes even months. It is not advisable to obtain a home loan from the same banking institution that holds a mortgage on the short sale or Foreclosure one is considering.


Coming to terms with the bad home


Some homes may seem like a “great deal” on the surface, however. It is always advisable that you dig deepest with those and get sound advice from a professional such as the Realtors with Coldwell Banker Chicora Advantage. They will help you take into consideration the condition, price, value while remaining objective so that you do not bite off more than you can chew.


The Bottom Line

Having first-hand information on how short sales and foreclosures work, arm you with the information you need to find true potential opportunities, without the worry of getting into a property that could become an incredible expense from the need for major repairs, rebuilds, title nightmares and more. In the end, the idea is to find a perfect opportunity for you.

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