"Distressed houses" is not a bad thing for buyers, its actually great. Residential properties either going through foreclosures or short sales is an extraordinary opportunity for buyers to obtain a home at a great discount, 30 to 60 percent off from the actual market value. Of course, there are stipulations though.
The progression of owning a distressed property is different than traditional sales, more complicated paperwork and longer transaction process. Also be aware of the old saying, "You get what you pay for," when shopping for foreclosed or short sale homes because many of these houses are neglected properties from past owner's inability to invest into their properties. Even if you buy a house for a steal, the repairs and upgrade might cost you more than the real estate itself, which is why it's very important to consult your local Laguna Beach real estate agent [http://www.cdmrealty.com/laguna-beach-real-estate-agent.html] before investing in such a large investment.
Before making an offer, potential buyers should perform the necessary due diligence to protect their investment by hiring an inspector to inform of any housing condition, structure soundness, and costly repairs that could arise in the future. This is important because bank sells these distressed properties as is. Because they are already losing money in the transaction, banks will not give any allowance for repair for homebuyers.
A professional appraiser should also be hired to appraise the property's worth in the fair market value in consideration of selling your house in the future. There is no reason a buyer can't sell their bargain-priced real estate for full market value.
Time is of the essence when it comes to a successful transaction, so pursue only when finances are in order and ready to go. Homebuyers in need of a loan first, should give themselves enough time, about 1 to 3 week in time frame to get approved, before making any offer. If paying in cash, make sure funds then are available immediately. This is because buyers already pre-approved with their finances have the best chance of purchasing if there are multiple offers from other buyers.
It cannot be stressed enough that for banks does not like distressed property and wants to get of them as fast as possible. They lose money in short sales and foreclosed home sale transaction, so financial institutions does not care about contingencies like buyer needing time to sell their current home before purchasing another.
The progression of owning a distressed property is different than traditional sales, more complicated paperwork and longer transaction process. Also be aware of the old saying, "You get what you pay for," when shopping for foreclosed or short sale homes because many of these houses are neglected properties from past owner's inability to invest into their properties. Even if you buy a house for a steal, the repairs and upgrade might cost you more than the real estate itself, which is why it's very important to consult your local Laguna Beach real estate agent [http://www.cdmrealty.com/laguna-beach-real-estate-agent.html] before investing in such a large investment.
Before making an offer, potential buyers should perform the necessary due diligence to protect their investment by hiring an inspector to inform of any housing condition, structure soundness, and costly repairs that could arise in the future. This is important because bank sells these distressed properties as is. Because they are already losing money in the transaction, banks will not give any allowance for repair for homebuyers.
A professional appraiser should also be hired to appraise the property's worth in the fair market value in consideration of selling your house in the future. There is no reason a buyer can't sell their bargain-priced real estate for full market value.
Time is of the essence when it comes to a successful transaction, so pursue only when finances are in order and ready to go. Homebuyers in need of a loan first, should give themselves enough time, about 1 to 3 week in time frame to get approved, before making any offer. If paying in cash, make sure funds then are available immediately. This is because buyers already pre-approved with their finances have the best chance of purchasing if there are multiple offers from other buyers.
It cannot be stressed enough that for banks does not like distressed property and wants to get of them as fast as possible. They lose money in short sales and foreclosed home sale transaction, so financial institutions does not care about contingencies like buyer needing time to sell their current home before purchasing another.
Source...