Buying Short Sales And Foreclosures

Buying Short Sales And Foreclosures

The slump in the housing market has forced many homeowners to foreclose or short sell their houses. There are thousands of such houses in each city. If you are looking to buy a new house, you should consider the foreclosed and short sale homes as well. You will generally find them for a lower price. However, you need to be aware of several factors before placing an offer for a foreclosed home. Here is some popular expert advice:

Most foreclosed homes are in a bad shape. The price of the house is only one of the aspects. Make sure you have the money for all the repairs and fixes.

Unlike a regular house on sale, the previous owner of a foreclosed home is usually the bank. And the short sales homes are owned by individuals that are looking to move out of the house for various reasons. They will rarely offer you upgrades and additional incentives. You basically get what you see.

If you are looking to buy a foreclosed home for investment purposes, you should also check out the renters market in the area. You will need to find a tenant quickly; otherwise you will be required to pay the mortgage from your pocket. Even a small amount can lead to financial stress in the long run.

If you are buying the house in another state or city, make sure you visit the place and check the neighborhood and city yourself. This will help you avoid surprises at a later stage.

Make sure the house is located near good schools. This can be important for your family. It can also be an important criterion for prospective buyers and renters of your property.

Check how long the house has been empty. Houses that have not been occupied for a long time can be infested with bugs and pests. The sewage and plumbing lines also get damaged over time. You may be looking at thousands of dollars in repairs under such circumstances.

Talk to a professional home inspector. Have him come over to look at the house. Have everything checked including the pipes and the power supplies. The house may not be in perfect, turn-key condition. However, the damage and the repairs should be reasonable and manageable for you.

If you are not an investor, and are looking to buy a foreclosed home for your personal use, hire a real estate agent who specializes in them. He or she will help you negotiate with the bank and offer you the best price.

Also, it could take a very long  time to get the bank to approve your purchase, in some cases up to a year. If you’re OK with that then by all means do it. If not, you might be better of just looking for a good house in the regular housing market.

Speed Up Your Home Hunt

Speed Up Your Home HuntThere are plenty of homes in Columbus Ohio Real Estate market today, and finding the right one for you and your family is often trickier than you might suspect.

It’s easy to spend days, weeks, and even months trying to track down the right home, and when you factor in things like negotiation of price and setting up a closing date it becomes even more frustrating, especially when you’re trying to speed things up and get into a home fast. But there are a few things that you can keep in mind which should make it much easier and much faster to not only find your dream house, but also to buy it and move in quickly.

· Get An Agent – Simply put, this is the number one thing you can do to speed up the entire process from start to finish. A real estate agent can quickly ask you what you’re looking for in a home in terms of location, size, price, and more, and then narrow down your options fast. Instead of spending weeks browsing the markets just hoping to stumble on a great house, they’ll show you the best ones for you from day one.

· Use The Net – Research is fast thanks to the Internet, and plenty of online listings include information about location, school district, crime, and more. Spend a few minutes taking a look at the online information about a particular home and you’ll speed things up immensely. It also makes it easier to narrow down your searches when looking online.

· Get Preapproved – Getting preapproved or prequalified for a loan doesn’t just help you avoid future frustration when you find the house you want and need to get the loan, it also helps speed up things in the early stages of house hunting. The reason is simple – when you’re prequalified, you know roughly what your budget will be. This means you can focus on looking at homes that fall into that budget range instead of wasting time looking at homes you may not even be able to afford.

· Know The Fair Price – Don’t try to absolutely lowball when you negotiate. Try to get a good idea of the right price before you make an offer. This way your expectations will be realistic and you won’t have to spend too much time negotiating when you could be signing the contracts.

If you’ll keep these four simple steps in mind you should have little trouble getting the right home quickly. It shouldn’t be something that causes you undue stress and leaves you frantically scouring for the right home, especially when so many great properties are available. Columbus Ohio is a great place to live, and you can get into your perfect home faster than you may realize.

For Sale By Owner

For Sale By Owner

Columbus Ohio is a wonderful real estate market and you happen to have a house you want to sell. All the cable shows and advice gurus tell you it is possible to sell the property yourself without the use of a real estate agent. Hey, why not? No reason to pay a commission for doing a job you can do yourself, right? Well, you can try “For Sale By Owner” as you put your house on the market. You do run the risk of crashing in the process.

This Quickly Becomes a Nightmare

Think of it as walking into a dark room. You may stumble around quite a bit before you find the light switch. The same happens if you attempt to sell your property by yourself. Columbus real estate typically sell for hundreds of thousands of dollars. It is no surprise that the paperwork involved is a sizable hill. You are going to be doing all the listing and marketing alone. FHA financing is the way most people purchase their first home. The property has to pass an FHA inspection and many require some improvements be done prior to approval. You will be responsible for scheduling any improvements prior to showing, and if you don’t know any contractors things get difficult.

What is Your Marketing Strategy?

It has to be more than putting up a sign on the lawn. Most buyers surf the Internet to find the home of their dreams. Lack of an Internet presence is going to hurt you. Real estate agents have website displaying the available property. If you are not on one of those sites, you are competing against them. Odds are the other side will win.
This is in addition to scheduling showing of your home and doing advertising elsewhere. You will find the marketing consumes a lot of your time, because you do not have immediate access to those outlets which a real estate agent calls on immediately.

Nasty Surprises at the Closing

A buyer may interested but this person wants to haggle. Expect some negotiations on the closing price. This person may want certain considerations for doing home improvements or a reduced sales price. You can expect some back and forth which can get a bit heated every now and then. The negotiations can wear you down to the point where you make concessions you do not have to do. The give and take on the closing costs are matters you might not be familiar with. There are papers which have to be signed, and you are going to need an attorney. This person has to have some experience with real estate or legal issues may arise later on.

You may not know of any lien on your property or prior claim to it. It is why real estate agents help with a title search. If you forget this part of the closing, you may be dealing with a property lien you do not even know exists. It can stop a transaction dead in its tracks and drive a buyer away.

You can Make More Money Using an Agent

This may sound a bit strange but it is true. Agents first of all will develop a value on your home and the figure could be more than you initially thought it might be. The real estate agent knows what to bargain over, and how far the trading can go. Little things like the gas utility budget do not escape this expert’s notice. When it is all said and done, you may discover you have a net profit which is more than you could hope to receive by yourself.

Going solo means dealing with the buyer’s agent, home inspection people, appraisers, the bank, and maybe a few more parties. Do you have the time or the patience? If you have neither you might end up selling low just to end the madness. A real estate agent has been through the process more than once. He or she can guide you through all the process of selling your home at a good price. Being your own real estate agent is like being your own legal counsel in a court case. You might win but the fight is going to bloody you. Worse than that, you could lose more money than the agent commission. It is more cost effective to use a real estate agent than trying to sell the property yourself.

How Does Title Insurance Work?

How Does Title Insurance Work?

If you are interested in buying a house in the market, you will have to ascertain that the seller actually owns the house. Lack of proper title transfer documents can lead to legal complications and court cases after you buy the house and move into it.

Most home buyers hire an attorney to investigate the past history of the house title. The attorney will check the chain of the title. He or she will report any discrepancies or claims associated with the title. Most attorneys will also look for any back taxes that the sellers owe to the state. The attorney will issue a certificate after the investigation. You should, however, remember that this certificate or report is not fool-proof.

Many real estate professionals and experts, therefore, recommend title insurance. You can buy it from your lender or an independent insurance company. How does title insurance work?

The insurance offers protection against any defects or complications in the title document. The extent of coverage will depend on your policy. Many title insurance policies also cover building permit violations and encroachments. You should also remember that the policy will protect you for your purchase price but it may not offer any coverage on the equity of the house.

Title insurance premiums are paid only once during the initial purchase and title transfer. The buyers can choose to buy the policy themselves. You can also negotiate with the seller about the policy. Sellers and buyers may also decide to split the title insurance premiums. If you plan to sell the property in two years, you can sign up for a binder policy that offers protection for a shorter period of time. You can lower your title insurance costs with such a policy.

You should consider several factors before buying the insurance policy. Make sure the insurance company is reliable. Talk to your friends and family members. You can also read online reviews from other users. Check the coverage. Most companies offer a basic policy and an extended protection policy. Read the fine print, and choose the one that is right for you. Title insurance coverage may also vary from state to state.

Understand the local laws and practices before signing up for it. If you are unsure of the policy, you may also consult a title attorney for advice. Title insurance is an important policy. It can help save a lot of time and hassles at a later stage. Take your time to shop for it.