This month’s issue of Fortune featured some good advice for those buyers looking to enter the wild world of foreclosures. We are seeing more foreclosures in the Boston real estate market, and this may be a great opportunity to jump…just watch out for the landing.
1. Consider paying cash: Some foreclosure transactions will require you to close in only a few days. With such short notice, your bank may not be able to get you a loan in time (two weeks is usually considered cutting it very close).
2. Perform due diligence: Foreclosures are usually sold “as is, where is,” but you can often inspect the property prior to bidding. It is also important to be wary of all liens on the property, as properties sold at auctions tend to be sold without a clear title. If you do not do all your due diligence, you many be stuck with a much higher bill than you anticipated. Foreclosures sold through licensed real estate agents and listed on MLS are sold directly by the bank, which clears the title prior to closing.
3. Hire a licensed appraiser: It is critical to know home much the property is really worth, and only an appraiser can tell you that. This could cost you a few hundred dollars, but it could save you a few hundred thousand. I’d say it is worth the investment.
4. Buy short: Instead of waiting for a property to get foreclosed on, you may want to get in early and opt for a short-sale. A short-sale is when the seller negotiates with his bank to sell the property for less than he owes. It is not inexpensive for a bank to foreclose, and often they are willing to cut their losses and move forward.
For more information about Foreclosure and Short-Sale listings, contact Bushari Group Real Estate at firstname.lastname@example.org