Archive for October, 2008
If you are looking to buy REO (bank owned) Real Estate join the crowd. Many seasoned investors have made huge amounts of money by purchasing foreclosures. While the Murrells Inlet area has not had the influx of bank owned homes as many parts of the country there may be more on the way along the Grand Strand. REO’s are not only for investors as first time buyers can also take advantage of the discounts. If you are in the market to buy foreclosures you should consider putting together a plan of action and a team of professionals to work with you in the process.
Money Matters - All REO properties require “Proof of Fund” to submit an offer. Financing REO properties can be difficult especially if the property needs any major repairs. Cash buyers certainly have an advantage but finding a lender that will work with you to purchase a bank owned property should be at the top of your list. Owner occupants may be able to take advantage of 203K loans for properties that need updates of at least $5000. Shopping for a lender should be at the top of your list unless you are paying cash.
REO Search - There are many websites for searching foreclosed properties online. While many of them are a good resource, hiring an REALTOR® to work for you is your best option. It has been my experience as an REO Listing Agent and Buyers Agent that the search sites tend to be behind the MLS listings and properties that have already sold continue to appear on some of these sites. Hiring a Buyer Agent to work for you to find REO properties can be a valuable resource.
Inspections - REO properties are sold ‘as is’. There are no sellers disclosures since the bank never lived in the property and has no knowledge of condition. Depending on the market some banks are now rehabbing properties prior to listing for sale. More often than not there are numerous repairs that need to be completed on a property and while foreclosures are sold at a discount, it is a good idea to know the costs of repairs and issues with a property prior to submitting an offer. Submitting an offer with no inspection contingency could give you an advantage and many times inspections are for information only once offers are accepted. A good home inspector or contractor and termite inspector will need to be part of your team.
Time is of the essence - Submit an offer on an REO property as soon as possible. Often there can be multiple buyers looking at the same property. If you have done your homework on the property don’t hesitate to get your offer submitted. Work with your agent to make the best offer first. In multiple offer situations your highest and best offer is your only chance and you need to be sure it is realistic. Make sure you consult with your attorney for assistance if you have questions about the contract.
Closing – Closing on REO properties could be delayed. Sellers addendum to sales contracts normally penalize buyers for not meeting the closing deadline. Per diem charges will apply as spelled out in the addendum. Your closing attorney will make sure there are no title issues on the property and you should be given a “Special Warranty” deed at closing. If there are title issues be prepared to wait for them to be resolved. As long as you do not cause the delay the per diem will not apply.
Contact me for more information on buying REO property along the Grand Strand or in the Pee Dee of South Carolina. Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.
When it comes to purchasing Real Estate in Murrells Inlet home buyers have choices not only in the property but also in deciding which agent to hire to help them through the process.
If a property is listed for sale the Listing Agent works for and is loyal to the seller. As a buyer you should consider hiring an agent to work for you to protect and promote your interests. A Buyer Agent can save you time and money on your purchase and assist you with issues that may arise in the buying process.
Most buyers begin their real estate search on the Internet or print ads and find properties that appeal to them before they ever contact an agent. When you do call about a property that is advertised you are most often calling the listing agency. They work for the seller. If you find more than one property listed by several different agents you will need to spend your time calling each company making arrangements to view the properties.
If you hire a Buyer Agent they can assit you with any property listed and once you hire an agent to work for you they will be constantly searching new property listings that meet your needs and desires. Depending on the market area you are searching, this can give you a huge advantage over unrepresented buyers.
When you call the Listing Agent, they will be happy to show you property and submit an offer on your behalf but they are working for and loyal to the seller. Their job is to get the seller the highest price possible and the most favorable terms for the seller. Your Buyer Agent will not only submit offers for you but they will also negotiate promoting your interests. Even if you find a property that is For Sale By Owner, it could be in your best interest to hire a Buyer Agent.
If you contact the Listing Agent on a property any information you give them could be used to the sellers advantage. Your Buyer Agent is loyal to you and keeps your information confidential. The Listing Agent must provide you with accurate information and disclosures but your Buyer Agent will work on your behalf using skill and care to promote your interests on your terms.
Buyers are sometimes relunctant to sign a “Buyer Agency Contract” when all they want to do is buy a property and often do not understand why they need a Buyer Agent in the first place. In order to hire an agent to work for you in a transaction you must have a written agreement with the agent. The contract spells out the terms of the agreement including the fees and duration. The choice to hire an agent is up to the consumer however there are good reasons that a Buyer Agent might be in your best interest when buying real estate.
Once a property is under contract there are inspections, appraisals, lenders and attorneys and your Buyer Agent will work for you to make sure all deadlines are met according to the purchase contract. If and when issues arise from inspections your Buyer Agent will also work on your behalf to resolve them as quickly as possible.
When it comes to buying Real Estate consumers have many choices. Hiring a Buyer Agent should be given strong consideration for buyers in todays market. Not only will they work to find you the property that meets your requirements but they will work for you throughout the process. From identifying properties, negotiating price and terms and handling issues as they arise a Buyer Agent will work for you! Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.
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