Thursday, February 6, 2020 / by Vanessa Saunders
While below market prices on foreclosure homes offer a big payday to investors, they also come with potentially significant risk. Anyone tempted by windfall profits should be aware that buying a distressed property isn't a guarantee they'll make money, or even get their investment money back.
Foreclosure homes are attractive to investors and buyers because they can be had at a significant discount off their market value. Distressed properties are always sold below other non-distressed comparable properties in similar areas. Lenders anxious to off-load an asset sometimes give enticements to buyers like lower interest rates and downpayments, and cutting out certain fees and closing costs.
Buyers know that the sellers of a short sale or a home in pre-foreclosure are having financial problems and aren't in a position to be tough negotiators. They are also in a time crunch to sell the property themselves before the lend takes it over. If they can't unload it, they're faced with losi) ...
Thursday, November 14, 2019 / by Vanessa Saunders
Buyers are allowed to make requests of home sellers when they see repairs they feel need fixing before they sign the purchase contract. Some buyers make the mistake of submitting a laundry list of requests. The goal of requests for repairs should be to ensure that the home is in a safe, livable condition. But when over-the-top requests and frivolous demands are made by buyers, the seller may reply with a few pointed requests of his own and end the negotiations.
While buyers have a right to ask for repairs, sellers also have the right to say “no.” The following are guidelines we like to follow to keep both sides moving forward.
1. Be sure the home inspector isn't inflating minor issues to justify his fee.
Some inspectors can raise buyer's hackles by using language such as “near the end of its useful life” (frequently seen for furnaces) or “recommend replacement.” Hire an inspector whose reports are thorough and sensible.