Foreclosures are still on the rise in certain areas of San Diego County. As a buyer, the enticing price of a foreclosure on paper can sometimes lead to more than bargained for once the property is viewed. Here are some helpful tips to researching foreclosed property before your loan documents are signed, sealed and delivered:
1) Home Inspection-Don't by-pass this important element based on cost alone. The average cost of a Home Inspection in San Diego ranges from $300-500 depending on the size, structure, age and other factors. Be present when the home inspector is navigating through the home to catch any items you may have missed on an initial walk-through. Request repairs from the seller or a credit if their is extensive damage. The lender may or may not oblige but it never hurts to ask and with the knowledge ahead of time you can find a contractor for an estimate to survey the cost of repair.
2) Termite Report-If the seller has not already obtained the termite report make sure your agent includes this in the purchase offer. Assess the damage. California is notorious for termite damage and most banks provide only Section 1 clearance. Check with your loan officer on the type of loan program you qualify for and if it mandates both Section 1 and Section 2 clearance. This will delay your loan transaction if not determined ahead of time.
3) Hire a Professional-If you're not sure about the foundation, easement access, or encroachment from a neighbor on your new property, hire a professional to survey this information and report back to you. This can save time and money in future expenses and headache.
4) Loan Program-There are specific parameters that must be followed depending on the loan program. FHA/VA lending may have more requirements for the condition of the home than conventional financing. Check with your lender ahead of time and obtain a list of these conditions before submitting your offer.
5) Bidding Wars-It is very likely you will not be the 1st and last offer on the property. Several home buyers including investors are shopping for great deals along with you. Be prepared to compete with others as you may be requested to submit your "highest and best" offer. It is often wise to have more than one property your eyeing. This way if you don't win on one, you have another you can submit on.
Although there are so many great deals on the market right now, patience and perseverance are key to obtaining the property you desire. You can shop foreclosure listings in San Diego for FREE on our website at http://www.westcoastlivingrealestategroup.com
Until next time, "The future depends on what we do in the present," Mahatma Gandhi.
Thursday, July 30, 2009
Tuesday, July 21, 2009
It's a Buyer's Game
Where are you in the buyer's game that continues to play out in today's real estate market? How do we know we've reached the bottom until it begins to rise? San Diego real estate continues to remain a hot commodity. With foreclosures and short sales dominating the market place, bidding wars are ensuing and although cash is still king, FHA financing which allows a purchase for an owner-occupied property up to 96.5% is available and winning bids. With the availability of CalHFA financing, to cover 3% of the Down Payment (it needs to be repaid but at a lower interest rate), that leaves .50% for a buyer to place as a down payment. It is a great time to buy! If you're still perched on the fence, your friends, colleagues and many investors are taking advantage of lower interest rates and in some cases are seeing homes at half the price of just a few years ago. A few things to remember when purchasing a Short Sale or Foreclosure:
1) Bidding Wars Happen! When an agent prices a property at or below market value this drives up the competition and multiple offers are received assisting the bank with obtaining a higher price for the property. Patience and persistence are key! If your agent is well versed in handling and closing both short sales and foreclosed property, stick with them. It is in their best interest to get you the home and close.
2) INSPECTIONS! Do your due diligence as a buyer and pay for a home inspection. This may assist you in catching any future problems, i.e. roof leakes, plumbing issues, etc. You can also hire additional specialists for property lines, mold and many other reasons to insure your new purchase doesn't have unforeseen damage or future issues.
3) Loans-Many sellers still want a 30-day offer when purchasing a foreclosed home. The sooner they get paid and get the property off their books, the more room they have for financing or replacing it with another foreclosure. Discuss reasonable time frames with your loan officer. Get all documentation in quickly and efficiently to avoid have to delay closing. Lending is still a challenge and is better tackled with a well versed loan officer in the mortgage product that suits your needs. FHA can be tough with loan conditions and time frames. Be prepared to be on call to both your lender and your agent for any last minute requested items.
4) Work with an agent that understands Short Sales and Foreclosures. Has the agent closed a Short Sale or Foreclosure? When was the last time they handled a transaction? Do they have any designations that may assist you in handling a Short Sale or Foreclosure?
Tackle these items up front and you will feel more prepared to handle the transaction. You can search our website for foreclosures, short sales and everything else on the San Diego Multiple Listing Service at www.westcoastlivingrealestategroup.com
Until next time, "You always pass failure on the way to success," Mickey Rooney.
1) Bidding Wars Happen! When an agent prices a property at or below market value this drives up the competition and multiple offers are received assisting the bank with obtaining a higher price for the property. Patience and persistence are key! If your agent is well versed in handling and closing both short sales and foreclosed property, stick with them. It is in their best interest to get you the home and close.
2) INSPECTIONS! Do your due diligence as a buyer and pay for a home inspection. This may assist you in catching any future problems, i.e. roof leakes, plumbing issues, etc. You can also hire additional specialists for property lines, mold and many other reasons to insure your new purchase doesn't have unforeseen damage or future issues.
3) Loans-Many sellers still want a 30-day offer when purchasing a foreclosed home. The sooner they get paid and get the property off their books, the more room they have for financing or replacing it with another foreclosure. Discuss reasonable time frames with your loan officer. Get all documentation in quickly and efficiently to avoid have to delay closing. Lending is still a challenge and is better tackled with a well versed loan officer in the mortgage product that suits your needs. FHA can be tough with loan conditions and time frames. Be prepared to be on call to both your lender and your agent for any last minute requested items.
4) Work with an agent that understands Short Sales and Foreclosures. Has the agent closed a Short Sale or Foreclosure? When was the last time they handled a transaction? Do they have any designations that may assist you in handling a Short Sale or Foreclosure?
Tackle these items up front and you will feel more prepared to handle the transaction. You can search our website for foreclosures, short sales and everything else on the San Diego Multiple Listing Service at www.westcoastlivingrealestategroup.com
Until next time, "You always pass failure on the way to success," Mickey Rooney.
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