Thinking About Buying A Home
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As a new buyer researches the Reno/Sparks real estate market, he will notice a lot of house are in foreclosure or are being sold as a short sale. A short sale is a home where the market value of the property is LESS than the loan amount owed to one or more lenders. And buyers often believe that these are the best deals, along with foreclosures. Don’t be scared off by these short sale properties as they may turn out to be a great deal for you.
If you are making an offer:
• Make sure you make the offer contingent on the short sale being approved by the lender and set a time frame for approval
• An addendum form is advised to outline the short sale contingency terms and conditions
• It is still prudent to conduct a home inspection even though the lender will probably require an “as is” sale – you still want to know what you are buying and what repairs need to be made
• It is possible the seller will not be able to do any repairs or even have the power and other utilities turned on for the inspections. So be ready to turn them on in your name. (After receiving short sale approval).
I would NOT recommend taking on a short sale purchase without your own representation of a knowledgeable licensed agent. There is too much at risk for you, the buyer.
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
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what is the difference of buying foreclosure and short sell?
The difference in buying a short sale or a foreclosure:
The short sale in Reno/Sparks real estate, purchase price is usually a competitive with foreclosures, the house is usually in good condition and sometimes still occupied. The acceptance of the offer will usually takes months and close quickly once acceptance is done. The sale will be as-is and no repairs, cash back for closing cost will not
be done by the owner. The important thing to remember is when buying a short sale is that in most cases you are helping the owner avoid foreclosure.
The foreclosure is when the lender already owns the property, and wants to sale the property as quick as possible. This offer is usually accepted within a week. Reno/Sparks real estate prices on a foreclosure will usually be very competitive. The lender will often (if requested) credit the buyer 3% (of purchase price) to help pay the buyers’ closing cost. Unlike a short sale after acceptance the Reo Company will often require 45 to 60 days to close. The condition of foreclosures will vary from house to house, but the sale once again will usually be as-is with no repairs. In some case the buyer can receive a credit to fix the damages to the house.
I would NOT recommend taking on purchasing a short sale or foreclosure without your own representation of a knowledgeable licensed agent. There is too much at risk for you, the buyer.
what is the first step for a person getting ready to buy a house?
As a new buyer there are a couple ways to get started in buying a home.
A buyer could start by getting pre-qualified for a loan. The buyer could ask people he knows what lender they used and how they where treated. Interviewing a couple different lenders is a good thing, as they all have different loan programs that they use. Just because one cannot get a buyer pre-qualified doesn’t mean that another will not be able to help. Once a lender gets a buyer pre-qualified and answered all the buyers questions, they will usually have 2 or 3 agents they like to use and refer the buyer to one of them.
A buyer could also start the home buying process by selecting a realtor first. Once again asking friends and family members if they know a good realtor, is a great place to start. Once a realtor has been selected, meet with him at his office. This will be the time for him to answer all the buyers’ questions and recommend two or three lenders that can get the buyer pre-qualified. The buyer needs to make sure he likes the real estate agent as they all have different personalities.
When a realtor recommends a mortgage broker or vise versa, by law no money changes hands. They are recommending someone they know and believe that this person will be an asset to the buyer.