Don't Get the Short End of the Stick in a Short Sale Home
There are times when fortune seems to favor you and everything falls into place, and for many families finding a good deal in the form of a home that is in foreclosure or on a short sale list is exactly the good fortune that they've been looking for. Taking a quick look at the discounts and price drops that quickly add up in one of these kinds of homes can be staggering as you realize just how much money you could save. Reading the details of the square footage of the home, number of rooms, and included amenities may hasten the decision in your mind to agree to the purchase-- but you would be wise to take your time. Many individuals who jump at the opportunity to own a home end up finding themselves on the bitter end of the deal when they discover the mistakes that they've made:
Never Skip the Home Inspection
Remember that while your real estate agent is likely friendly, helpful, and quick to answer any questions you might have, their ultimate goal is to sell the house. Because of that reality, it's important to realize that some of the more negative aspects to the home could have been overlooked during your initial tour, choosing to focus on the positives instead. By having an expert come and inspect your home, you can get the specific details of what needs refurbished, what may need replacing, and how much it will cost you. Keep in mind that a low cost of purchase for the home will not reflect the amount of money you have to put into repairs!
Don't Ignore Insurance Concerns
If you buy a home the traditional route, odds are you will receive disclosure information at some point from the seller that could highlight important insurance nightmares down the road. This is important to be aware of because it guarantees that you won't be surprised and have to pay high insurance rates after purchasing the property. However, buying a home from the bank (as is typical in a foreclosure scenario) is often without a disclosure statement at all.
In other words, if you're moving into an home that is located within a flood zone, you might end up paying crazy additional insurance costs just because of the location—but the bank you're buying from doesn't have to tell you that. To cover all your bases in the sometimes tricky world of real estate, consider talking to an attorney (like those at Valentine & Valentine PC) who can help you to know which questions to ask and what deals to take.