Posts Tagged home buyer
Top Home Mortgage Loan – Main Navigation
Posted by Top Home Loans in Off-Topic on November 28, 2008
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The Home Buyer’s Toolkit
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- Renovate or Relocate?
- Mortgage Life Insurance
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- The Truth of Power of Sale
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10 Reasons Why you Shouldn’t buy a Power of Sale Home
Posted by Top Home Loans in Mortgage Advice, Property Management on August 13, 2010
Lots of bargain shoppers love to hunt for power of sale deals. Many think they are getting a huge bargain if they are able to shave off ten or fifteen thousand off the asking price; however, are they really getting a good deal? Below are ten reasons why they probably aren’t.
1. The previous owner knew well in advance that they would be evicted by the bank. Most home owner’s will damage the property quite a bit before moving out. Some home owner’s have even went to the extent of destroying the house.
2. What did the person do in the house before? Did they commit fraud? Drugs? Crimes? Who knows what happened. You certainly won’t.
3. What is the neighborhoods opinion of the property? Everyone in the neighborhood will know the house was foreclosed on, and they will know that you bought it. Do you want that to be what everyone thinks of you?
4. Who was in your house before it? The people who lived in the foreclosed house may have used it as a grow op, or they could have done other nasty things. People who think the previous owners still live their could visit your house thinking the previous owners still live there.
5. No warranty and no guarantee. There is no way the bank will give you any details on the property, and they will sell the property to you as is. They will not make any promises to you at all.
6. The bank wants to get rid of the property as quickly as possible without losing to much money, so they will try to sell it for the best price within the best time frame. They still want to earn a profit, so don’t expect them to negotiate the price too much.
7. Cost of the house versus cost of repair. Most home buyer’s do not have the money to pay for renovations, upgrades, repairs, or other items the house needs. Usually, they can barely afford the down payment, so what they save in costs with the house, they will end up giving it all back in interest, fees, and repairs. They will probably end up paying more as well.
8. Sleep easy. When you have to constantly worry about repairs, damages, previous owners, and the houses history, this can have a toll on your mental health, and your pocket book. Protect your sanity and stay away from power of sale properties.
9. Your spouse will kill you. Most couples don’t enjoy moving into a fixer up. People prefer a brand new fresh home instead of a used and abused house. Keep your spouse happy, don’t buy a power of sale.
10. Your house will bring down the property value of the neighborhood. It’s true that one house can bring down the value of the entire neighborhood. Don’t make that your house.
A power of sale can sound like a good idea upfront; however, it you look at the specific details of the property, it is usually better to buy new or buy a resale property. When you do this, you will be able to get the whole story.
Have you purchased a power of sale? How was your experience with a power of sale? Leave your response in the comments below.
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How to Buy a House Privately from a Private Seller
Posted by Top Home Loans in General Banking, Mortgage Advice on July 22, 2010
A home purchase usually involves a real estate agent; however, some home seller’s prefer to not use the money for the real estate agent, and they would prefer to sell the property on their own. Most of these transactions are lumped into a whole market called the ‘For Sale by Owner” market. FSBO is a thriving market that your mortgage broker won’t usually tell you about; however, as a home buyer, you want to make sure that you visit all available options including FSBO.
The first step to finding a home that is privately listed is to find a website that focuses on for sale by owner deals. To find a website like this, all you need to do is go to your favorite search engine, or the search on this site, and search ‘for sale by owner’. This will provide you with a list of listing websites that show all the available homes in your area to browse through.
The next step is to find several houses that you are interested in. Many of the houses will have listing prices that are high in comparison to those listed on MLS. What you need to do is make a list of all the properties you are potentially interested in. At this time, you should have a list of questions that you are looking to get answers from the seller. This includes questions about the price. You goal is to try and determine the lowest possible price that the buyer would be willing to accept. After several phone calls, you should have shortened your list quite substantially.
Once your list is complete, you should have several houses that you would like to actually see. The next step is to book appointments with the seller to visit the property. The best way to schedule visiting the properties is to visit them all on the same day. This will allow you to give accurate comparisons between the properties, and it keeps it fresh in your head. It is best to be very thorough in your inspection of the homes.
Once you have found a house that you are looking to make an offer on, then you can call the seller to discuss the offer. Two conditions that must be put on the offer is the condition of financing, and the condition of an inspection. An offer in on a private sale should always be lower than listing, and the lower you can make your offer, the better.
Once a signed offer to purchase has been made, it is now time to call your mortgage broker and get your mortgage approved. Once your mortgage is approved, and the inspection has been completed, then it will be up to your lawyer to finalize the details of the home purchase.
Purchasing a property privately is not difficult; however, it does that quite a lot of work from the buyer. Instead of relying on the real estate agent to complete everything in regards to the home purchase, the buyer and the seller have to do it themselves. This puts the bulk of work on those involved in the transaction. If your looking for a low price on a unit, this isn’t the way to do it. If you find a property that you can’t live without, then you can use the for sale by owner system to buy the house of your dreams.