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.
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