When swimming with sharks, you better know how to swim. Is what have been told to every investor or future homeowner looking to get a great deal through buying foreclosures. While it is attractive to save 20 to 60%off the regular price of a house which in turn add up to $10,000 to $900,000 in savings for most foreclosure owners, and then you can hold or flip at a later date. Yet there lies the pitfalls and the old saying: if you jump in the water, expect to get wet. Now my friend allow me to share with you 7 ways not to buy Foreclosure Headaches.
First way is to always, always get an inspection done, even if it is not contingent on the contract to buy, spend the $150.00 for the inspector
He / she will point out all hidden headaches for you in every inch, so when you begin your repairs, you will never have to go over budget with
unexpected damages and repairs.
Second way not to buy headache foreclosures is to always get a survey done. I know the property is all fenced in, and the markers are even there, and also the finance company and title company may tell you they do not require one; or you may even feel that the $300 to $1000.00 fee is too much as you already have other fees. Let me tell you friend, it is a nightmare to buy a property and then later on find out you only own half 0f the land, or what was near the street now have to be torn down and with a permit.
Third way is to get an appraisal. Don ' t need one?. Yes you do. And yes you are getting a great deal and that property is for next to nothing. ( And it might be worth nothing afterwards ). Get an appraisal to find out for sure what it is worth now and see what the other houses that the appraiser compared it to look like, and how fixed up are they already
for the price range you are buying in. Because it is sad to buy a property
with all fees, pay. Fix it up, pay. Holding on to it while empty, pay.
Keep up all utilities and sometimes permit, pay. And then only to sell
later, and after deducting you only get net income of $3000 - $5000.
Fourth way of buying foreclosures. Do not buy a house that is more than 25 years old in any city, concrete or wood. Why?. Most city
codes will start requiring electrical and plumbing improvements after
that time and because when you sell the property, they will require a
city inspection for roof, plumbing and electrical and you will have
to have a " C. O. " certificate of occupancy before the deal can go
Fifth way not to buy a headache foreclosure: on top of getting a
property inspection above, which will give you a big grand repair
price estimate; get you own handyman in there before putting in
your final offer. It will only take 30 minutes to 1 hour. Have the
handyman gives you a good net estimate, and with all the costs
cutting to see really how much it will cost you to fix up that property
and how profitable will this foreclosure really be.
Sixth way of buying foreclosures: when writing your offer, do your budget from top to bottom such as: price you are offering and how
high are you willing to go. Price for survey, title company fees and
title insurance ( always ) . Appraisal, insurance, taxes, and
miscellaneous. Then after purchase, utilities deposits and payments;
handyman labor, materials, mortgage payment for time empty; gas,
food, newspaper ads. So a whole budget, and then you can make a
true offer and reap true profits.
Seventh way and best way to buying foreclosures is, no matter how good the deal sounds or is on a foreclosure you are buying, never,
ever buy a property without going through a " Real Estate Lawyer "
( not a divorce your lawyer or your brother in law ), or have one
involved in the deal. It is always better to get your own to protect
you from liens, fines , undisclosed damages and to overlook all
the steps mentioned above, and also to negotiate better terms in your
contract, and a lot more. But why pay $500 to $2500.00 in attorney
fees, as required in most states in real estate transactions, when you
can get you a law firm on retain. Happy Foreclosures Hunting And Buying. James Dazouloute
Make Sure Each Foreclosure You Buy has been properly taken over... SEE This Little Book:
DON'T FORGET TO SUBSCRIBE TO THIS SITE BY... EMAIL --- OR --- R.S.S FEED --- OR--- BY JOINING GOOGLE FEED ABOVE. So You Can Always Quench The Thirst That Is So Deep Inside You For Knowledge And Truth... AND SHARE THIS WITH ALL YOUR FRIENDS... DON'T BE SELFISH http://www.Jamesdazouloute.net/
ALSO... LEAVE A COMMENT -BELOW- AND SHARE YOUR EXPERIENCE ABOUT THE SUBJECT OF THIS ARTICLE