After all your preparations and marketing efforts, what do you do when you get that first offer?  Don’t jump for joy or wallow in disappointment until you’ve read all the terms.  Price is just the beginning, and other contingencies will ultimately affect your bottom line.

In reviewing the offer, pay attention to seller concessions, which can range from asking you to pay closing costs to including an allowance for roof repairs.  Buyers may also request inclusion of certain articles of personal property not physically attached to the home.  This might include the refrigerator or pieces of furniture.  You can decline or accept the terms, but it’s best to establish in your listing those items included and excluded in the sale.

Mortgage and appraisal contingencies indicate that the buyer will seek financing at a certain rate and terms, and that the appraisal must satisfy the lender.  Make sure that all of the terms are realistic, and that there is a reasonable time limit for the buyers to secure their financing.

These and other terms in the offer impact how much you net from your sale, regardless of what actual buying price is stated.  It’s possible that a “full price” offer could result in thousands less than a lower offer with fewer contingencies, so please consult with your REALTOR® before listing and before accepting or rejecting any offers.

If you are in need of real estate guidance, please feel free to contact me.  I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.

In real estate investment, one person’s misfortune is another’s opportunity.  Indeed, with so many foreclosed properties on the market, buyers are poised to take advantage of a literally once-in-a-lifetime chance at investment or ownership.

Every opportunity presents some challenges, however, and you’ll need more than luck to effectively buy a distressed property.  These transactions are more complex than traditional sales, and you are strongly advised to seek the advice and representation of a real estate professional well versed in this new marketplace.

While a bank-owned home may look like a great deal, don’t assume that any offer will be accepted.  Most banks list their foreclosed properties through real estate brokerages, and while they want to sell as quickly as possible, the listing agents have a fiduciary responsibility to get a good price for the owner.

An insultingly low offer can table the transaction permanently, so proceed with common sense and a trusted representative.  Keep in mind when negotiating your offer that you should have an additional 10% of the price tag set aside for repairs.  A foreclosed property, particularly an older one, will almost certainly require some overhauls.

In addition to your agent, consult with a local real estate attorney who can advise you about current foreclosure laws, which vary significantly from state to state.  Know exactly who’s at the door when your opportunity knocks!

If you are in need of real estate guidance, please feel free to contact me.  I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.

If you’re planning to go bargain hunting for a property, you are likely to come face to face with a special challenge: the long-vacant home.  Many of these properties have been foreclosed, and now rest in the hands of the bank.  The owners are long gone.

While the greatest percentage of these “distressed properties” are still in fair to good condition, how can you be sure of possible defects in the home when the previous owners are not available to disclose such facts? 

Since the bank-owners and their real estate agent may not know all the details about the previous owners, you would be well-served by ordering a “pre-inspection” if you find an attractive property at a low price.  Hire an inspector for a preliminary look, and do not make an offer until you know more.

You can pay just a couple hundred dollars for a brief inspection, money well spent before you submit a bid.  Having an idea of the home’s true condition can help you determine your offer, or help you make a decision to walk away from the deal, without any obligation.

If the utilities are cut off, ask your representative about getting them turned on during the inspection, which is critical to the inspection’s accuracy.  Take a careful look at recent sales in the neighborhood, and make your offer armed with knowledge and confidence!

If you are in need of real estate guidance, please feel free to contact me.  I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.