So many buyers think the best deals out there are foreclosures and short sales, but they can actually cost MORE!
Here are just some of the additional costs you may incur with a bank/distressed sale:
Survey: Approximately 150.-300. (usually a seller cost)
No Tax pro-ration: (usually 105% of the last tax bill in this area, banks only will usually do 100%)
Usually no negotiation on repairs, so if you do your inspection and it is not satisfactory, you talk with your attorney regarding canceling the contract if it is within the contingency dates, but no one will give you back the 300. or so you may have spend on a home inspection.
Not closing on time can also cost you a Per Diem, as banks usually have this in their contract addendums. This is more of a risk now with underwriting and appraisals taking longer and daily changes in the banking industry.
Appliances: Banks usually say there is “no bill of sale on personal property”, so what you see when you write an offer may not be what you see before closing.
No disclosures: Since they have never lived in or in most cases, have never even seen the property, they are exempt from having to do the usual disclosures.
Deferred maintenance: When someone can no longer pay their mortgage, many times they also have not been able to properly keep up with maintaining their home.
Timing: Many times there is a very long wait to get a response on an offer, and it is usually worse with short sales than REO’s, which are properties that have already been foreclosed on. You could be risking closing on time to be able to take advantage of the first time home buyers credit, which expires 12/1/09.
These are just some things to keep in mind when considering your options. Foreclosures and distressed sales can be great opportunities for the right buyer who is not trying to closely watch their costs, who has a lot of time and patience, and the ability not to get too attached to or emotional about the property. Don't get me wrong, there are a lot of great deals out there to be had right now, but don't make the mistake of thinking that the only good deals are distressed sales. Sometimes, a truly motivated seller with equity in their home can also offer a wonderful buy with less cost, less waiting and less hassles!
***especially for first time buyers, investors and move up buyers.*** Rates are great, too!
We are having a "HUGE sale" on our large inventory of VERY well priced HOMES!
My Direct Number at the Office is 847.516.6760
If I can be of assistance to you, please do not hesitate to call or email me. It will be my pleasure! By the way, if you know of someone that could benefit from my high level of service, please call or email me with their name and daytime phone number and I will make sure to follow up and take great care of them. My business keeps growing from your referrals.
There are fabulous buys on the market....now is a GREAT time to buy real estate in IL, especially for MOVE UP Buyers, Waterfront Buyers, Vacation and Second Home Buyers, Investors and First Time Buyers!
It is an EXCELLENT TIME TO BUY AND SELL NOW, especially for second home buyers, investors, move up buyers and even first time buyers!
I hope you find this information useful. I am only a phone call or email away of you need real estate help:-)
If I can be of assistance to you, please do not hesitate to call or email me. It will be my pleasure!
By the way, if you know of someone that could benefit from my high level of service, please call or email
me with their name and daytime phone number and I will make sure to follow up and
take great care of them.
The majority of my business is referral and repeat clients. I am so grateful it keeps growing from your loyalty and referrals:-)
I appreciate YOU and your referrals!
I can be reached at my direct number at the office: 847.516.6760. I look forward to hearing from you!
Information deemed accurate and reliable but not guaranteed. Source MRED MLS.Disclaimer: Information herein may come from various sources, some of which may not be reliable and may change without any notice. Debra Kukulski does not guarantee or is any way responsible for the accuracy of the information in this blog and information provided is without warranties of any kind, either express or implied. Information on this blog represents the opinions and ideas of the author; comments by others may not express the views of the author. All photos and content may not be duplicated without express written consent of author.
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