4 Mistakes to Avoid When Buying a Foreclosure
April 7, 2011 By Leave a Comment
Foreclosures continue to flood real estate markets across the country, and buyers are looking to cash in on what they view as some of the best real estate deals. But experts say that while some foreclosures are a great purchase, buyers need to be cautious before jumping in to make sure they really are getting a bargain.
Dan Steward, president of Pillar to Post Professional Home Inspections, advises buyers considering a foreclosure to avoid the following:
[dropcap2]1.[/dropcap2] Don’t judge a house by looks alone. A $2 million mansion may look fabulous but have mold hiding beneath the walls or need numerous, costly repairs. A fixer upper, on the other hand, may look rundown but have excellent bones and can be repaired at a reasonable cost. A home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head, Steward says. He cautions buyers to not just rely on previous inspections, however, since vacant homes can deteriorate rapidly.
[dropcap2]2.[/dropcap2] Don’t focus on price alone. Buyers may focus on the ultra-low price so much that they forget to factor in other qualities, such as the home’s school district, view, location, and crime rate. Steward cautions buyers to not assume that financial problems of the previous owner are the main reason for every foreclosure.
[dropcap2]3.[/dropcap2] Don’t be tempted to “flip.” Purchasing a home at bargain price, updating it, and then trying to sell it for a lot more may seem tempting, but Steward warns buyers to be cautious. Unless the buyers are pros at house flipping, they’ll likely run into several novice mistakes in trying to make fast money on flipping a foreclosure. Steward recommends buyers consult a real estate professional, home inspector, and contractors before considering a flip.
[dropcap2]4.[/dropcap2] Don’t go over budget. Foreclosures often require some fixes so buyers need to make sure they have the money to afford needed repairs. Steward recommends that buyers have at least half of the money in cash for needed repairs. He says that buyers will want to avoid taking more loans than needed, particularly private loans, because the interest on them will slowly chip away at their initial foreclosure bargain.
Here is a link to “All Bank Owned Properties Listed In The Sun Valley MLS”
SOURCE: REALTOR® Magazine-Daily News
Listing Expired – House still unsold? Part 1: What it takes to sell in todays market
March 7, 2011 By
Selling a home in today’s market is far different from selling a home just a few years ago. When things were booming and buyers were snapping up homes at ever-increasing prices, agents didn’t have to work very hard to bring you a buyer, and sellers didn’t have to work very hard to prepare their property to sell.
All that has changed.
As you’ll read in my special reports, the three elements of pricing, presentation, and marketing carry equal weight. A successful sale hinges on all three being done correctly, and that means both you and your agent must make a greater effort today than in years past.
Proper pricing has become crucial as homeowners compete with banks selling their lender-owned homes. Your agent must stay on top of current sales in order to recommend the correct price for current market conditions.
Then, your agent must work aggressively to make your home listing stand out from the crowd. Because the vast majority of buyers that purchase in the Wood River Valley begin their search on the Internet, your home’s “Internet Presence” and online exposure is critical.
It also means marketing directly to buyer agents, and then being the kind of cooperative agent that other agents want to work with.
Having been fortunate enough to represent some of the largest home builders in the Pacific Northwest, I worked directly with some of the best advertising agencies, architectural photographers, interior designers, website gurus, national sales and marketing strategists, etc., and as a result developed a unique set of marketing skills. I also had tremendous success selling properties in previous recessionary type markets (remember when the prime rate hit 21%).
Because real estate agents have to work both harder and smarter, it’s more important than ever to choose an agent wisely. And – it’s more important than ever for homeowners to work cooperatively with their agents to present their homes in the best possible light.
Give me a call at 208.720.6888 – I’ll be glad to sit down with you and explain how we can work together to give your home a “Real Marketing Advantage” over your competition. Of course, there’s no obligation.