May 14

5 reasons why you should buy a home in the fall

As potential homebuyers often learn, there’s a right and a wrong time to purchase a new home. In fact, many agree that fall is the right season for shopping. It reveals problems within a home and the weather is just decent enough to get you a good deal. If you’re looking to invest, here are five reasons to wait for fall:

  1. Lower Prices

Spring is the accepted time to put homes up for sale, and as many homeowners strive to do just that, they also price their homes too high. Of course, as higher priced homes rarely sell, these same homeowners start to lower their prices throughout the summer and fall months. By mid-fall, you can expect some serious price drops.

  1. Close At The End Of The Year

Many homeowners view their properties as an investment, and as the year draws to a close, everyone pushes to make a sale to close on or by December 31st. This allows homeowners to get a big tax break the following year.

  1. Less Competition

Most people relocating for work will want to do so before the new school year starts. By the end of September, you will start to see your competition die down. This ultimately translates to better deals for you as you don’t need to contend with others and worry about a bidding war.

  1. Holidays Are Motivational

Most sellers find that having their homes listed is a disruption to their daily lives. When the holidays are fast approaching, sellers just want to unload their burdens and focus on the things that matter to them i.e. parties and events. A seller is more likely to be flexible during this time and accept a lower offer just to get the home off the market.

  1. Harsh Weather Shows Off Flaws

How awful would it be to purchase a home that becomes an impending money pit? Nothing is worse than not knowing that there were undisclosed flaws within the property that you never even knew about. Fall months bring dreary weather that it will all help highlight any potential problems a property may have.

If it’s time to purchase a new home, fall is the season for it! You get better deals as motivated sellers clamber to unload their burdens. Take the time to enjoy shopping the market with little competition and a better potential for investment as homes better display their inherent flaws.

February 14

How to purchase a home in foreclosure

Contrary to popular belief, buying a foreclosure home is generally much faster than handling a normal home purchase. During a foreclosure purchase, you may be completing several steps in the purchase procedure at a single time. This article will provide information on how to effectively purchase a home in foreclosure.

Step #1: Finding A Real Estate Broker And Lender

The aim of searching through foreclosure listings is not to locate a house, but to find an agent. Banks will typically hire real estate brokers to handle the real estate owned properties. This indicates that the property has been foreclosed on, and the lender is now the owner and seller of the property. Most times the buyer does not work with the agent; therefore, not splitting the commission between two brokers.

Step #2: Use A Preapproval Letter

Unless you are planning on paying cash for a property, it is recommended that you get a preapproval letter from the lender. This letter details how much money can be borrowed based on the assessment of your income and credit score. Unfortunately, many buyers first want to find the house and then organize the financial situation. The issue is that these properties are bank-owned and will be sold quickly; therefore, the buyer may not have the necessary time to organize financing. To avoid this challenge, it is recommended that you deal with financing first and then choose a house.

Step #3: Review The “Comps” Before Making An Offer

While there is not a rule of thumb regarding the bottom line on price, it is advised that you evaluate the recent sales prices of “comps” or comparable properties. This will ensure that you have a competitive offer based on current market conditions. In some cases, the bank prices the property low to ensure there are multiple offers made within hours, but it is not necessarily the most competitive price.

Step #4: Bid High If Homes Sell Quickly

If the foreclosed property you are considering sells quickly, it is recommended that you bid high, unless the property has been on the market for a long time without activity. The house and its location matter, but some homes will sell more quickly than others. In the case of foreclosures, larger properties are more popular than smaller homes that sit on the market for several weeks or months. Of course, this will always depend on the current market conditions.

As can be seen, there are certain issues one must take into consideration when purchasing a foreclosed home. Using the steps above, you can find and buy a foreclosed property effectively.