Buying Luxury Home Foreclosures
Foreclosure homes present buyers with amazing opportunities for purchase properties that they wouldn’t otherwise be able to afford, and none more so than luxury homes foreclosures. Homes that would ordinarily be out of reach for the average person can be bought at a fraction of the listing price, but beware the pitfalls that could turn a potentially sweet deal sour. When dealing with foreclosure homes, particularly luxury homes, the deals tend to be a bit more complicated than an ordinary real estate transaction, but there are some tips that can help smooth the way.
Hire a real estate agent who has experience in distressed properties. Working with a reputable agent who is knowledgeable in this area is one of the best things that a potential buyer can do. Interview two or three prospects and inquire about their history in dealing with foreclosure sales.
Do some research of your own. Search around and find out what similar properties are selling for in order to determine whether or not you are really getting a bargain price. Real estate agents can also help by providing reports that allow you to view comparable home sales for the previous year or two. If you want to start your research before you contact an agent, searching real estate sites online can give you a good idea of pricing.
Patience is a virtue that you will need in plenty. When dealing with luxury homes foreclosures, be prepared for a lengthy waiting time. It takes time for the offer to be accepted (sometimes months), as well as to sort out the various entanglements that the previous owners may have left. Things such as unpaid loans or other debts that the previous owners have can delay things even further.
Get A Home Inspection. Before you purchase any home, an inspection is wise (if not required by the bank). Don’t assume that just because a house is high priced that it has been well cared for. Go through the home with a home inspector or a knowledgeable contractor and make a list of any repairs that will need done and how much they will cost. This will give you a better idea of whether or not it is worth even a bargain price.
Have your Financing in Order. Getting financing for any foreclosure can be difficult, but luxury homes foreclosures can be even trickier. If you don’t have your financing planned ahead, it could take months for the approval to come through. While you can view other homes during this time, another buyer could come in and buy the home during the interim.
There are many things that make purchasing a luxury foreclosure home different than your run of the mill real estate deal, but the bargain may make it well worth the effort. Competition is stiff for these properties and many investors will work out a deal with the banks before the foreclosure is even final. Knowing what you want and how to get it, along with having everything in order ahead of time can help to ensure that you get the home that you want at the price that you want.
Sunday, December 7, 2014
Saturday, December 6, 2014
Tips On Buying New Construction Homes
New construction homes offer buyers many advantages, the first being that you start off with a blank canvas. You needn’t worry about inheriting the previous owner’s tastes in paint, carpeting, or appliances. Likewise, you already know that everything in the home is new so you don’t have to worry about making repairs. All of these things are reasons why new construction homes are so popular. When buying a newly constructed home however, there are some things that can help ensure that your new home is everything that you dreamed it would be.
Hire an Agent of Your Own – Regardless of what may be said, builder’s sales agents are paid by the builder to represent their best interests. Hiring a buyer’s agent to work on your behalf will negate any of the high pressure tactics used by many builder’s agents in order to get you to sign the contract. Since they are being paid by the builder, a representative who is working for your best interests can save you money.
The Builder’s Lender Isn’t Always The Best Option – Many builders prefer that you use their lender because they can then be kept fully aware of your progress, but their lender may not offer the best deal. Consider other sources when seeking out a lender, such as your personal credit union or bank. In many cases they will offer attractive rates and terms based on your history with them. Your agent may also be able to provide you with a list of lenders.
Get Verification for Extra Options and Upgrades – Builders usually offer various upgrades and options, but bear in mind that these extras often make up the highest profit margin for builders. Some builders are able to sell their homes at nearly a bare construction cost due to the fact that the bulk of their profit is made in upgrades. Once you’ve decided what you want, find out whether your lender will finance all of your selections. If you know a handyman, it may save money to purchase the upgrades and install them yourself. Also ask the builder if you are held liable for items that cannot be returned to the supplier.
Look Into The Builder’s Reputation – Word of mouth spreads rapidly and talking to neighbors and previous clients can tell you a lot about how the builder operates. You can also check with the BBB to see if there have been previous complaints about workmanship, etc. Lastly, look at the construction yourself. If the workmanship looks sloppy or haphazard, think twice before signing anything.
Hire a Reputable Home Inspector – This is a must whether you are purchasing a new construction home or a centuries old farm house. Having an inspector go over all the details can save time, money, and headaches in the long run.
New construction homes are wonderful and purchasing one is exciting, but they aren’t without their pitfalls. Going into the transaction with your eyes open to potential problems will ensure that your new home is just the way you want it.
New construction homes offer buyers many advantages, the first being that you start off with a blank canvas. You needn’t worry about inheriting the previous owner’s tastes in paint, carpeting, or appliances. Likewise, you already know that everything in the home is new so you don’t have to worry about making repairs. All of these things are reasons why new construction homes are so popular. When buying a newly constructed home however, there are some things that can help ensure that your new home is everything that you dreamed it would be.
Hire an Agent of Your Own – Regardless of what may be said, builder’s sales agents are paid by the builder to represent their best interests. Hiring a buyer’s agent to work on your behalf will negate any of the high pressure tactics used by many builder’s agents in order to get you to sign the contract. Since they are being paid by the builder, a representative who is working for your best interests can save you money.
The Builder’s Lender Isn’t Always The Best Option – Many builders prefer that you use their lender because they can then be kept fully aware of your progress, but their lender may not offer the best deal. Consider other sources when seeking out a lender, such as your personal credit union or bank. In many cases they will offer attractive rates and terms based on your history with them. Your agent may also be able to provide you with a list of lenders.
Get Verification for Extra Options and Upgrades – Builders usually offer various upgrades and options, but bear in mind that these extras often make up the highest profit margin for builders. Some builders are able to sell their homes at nearly a bare construction cost due to the fact that the bulk of their profit is made in upgrades. Once you’ve decided what you want, find out whether your lender will finance all of your selections. If you know a handyman, it may save money to purchase the upgrades and install them yourself. Also ask the builder if you are held liable for items that cannot be returned to the supplier.
Look Into The Builder’s Reputation – Word of mouth spreads rapidly and talking to neighbors and previous clients can tell you a lot about how the builder operates. You can also check with the BBB to see if there have been previous complaints about workmanship, etc. Lastly, look at the construction yourself. If the workmanship looks sloppy or haphazard, think twice before signing anything.
Hire a Reputable Home Inspector – This is a must whether you are purchasing a new construction home or a centuries old farm house. Having an inspector go over all the details can save time, money, and headaches in the long run.
New construction homes are wonderful and purchasing one is exciting, but they aren’t without their pitfalls. Going into the transaction with your eyes open to potential problems will ensure that your new home is just the way you want it.
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