Get a Quick Education About the Foreclosure
Game...and Save Yourself Time, Money & Agony
A lot of people mistakenly believe that they know enough about the
foreclosure-buying process to make a really good decision - and find the
optimum home that will allow them to get the best return for their money.
But their inexperience, and their ignorance, regarding the
larger picture, can indeed hurt them.
Especially if they go it alone. Especially if they don't work with an
experienced agent. Especially if they don't work with a real estate agent with
adequate experience in the field of buying foreclosures.
One of the things that happens frequently, when an inexperienced buyer
is looking for a foreclosure property, is that they mistakenly believe that their
brother Bob, or someone they know, can fix the property up for them. And so,
they have an overwhelming tendency to deliberately look at properties
that are run down, and not in very good condition.
And most of the time, even if these people CAN fix the property up,
it will quite often bankrupt them long before they can get the property in actual
tip-top selling condition. Or, in some cases, they will indeed fix it up and make
it sales-ready, after sinking a lot of money into it... and then they will mistakenly
think that the home will then be ready to flip for a fat profit, based on property
values that the local MLS claimed were the going prices for similar houses
in that same area at the time they actually bought the foreclosure home...
But asking prices - and actual SELLING prices - are
two totally different animals, in many cases.
And just because a home has an assessed value of $400,000, that doesn't
mean it will sell for that price. Especially in tough economic times...
There are many houses listed in your local MLS property search
Web sites, in virtually every city in the USA, that don't reflect the price at which
the home will actually sell. Factor in this additional negative component - which
is that the longer the home stays on the market, the bigger the ACTUAL drop
will be in the ultimate, actual sales price, and you have a
clearer picture of what's at stake here...(scroll down to continue).
***These two critical mistakes are the most common examples of flawed
logic that kill the aspiring foreclosure-buyer time after time after time...
***Critical, Common Mistake No. 1: Here's what typically happens when
the prospective foreclosure-buyer mistakenly believes that they can have their
buddy Bob, the handyman, fix up the property and then flip it for a big return...
the vast majority of the time, the houses will wind up being only about 90%
repaired. Because the buyer didn't understand the true cost of repairing the home...
and they didn't understand the true magnitude of the repairs...and they didn't
understand that there were unforeseen problems in the home. And so they
end up running out of money before the home gets refurbished.
And then, the home will become foreclosed on AGAIN - and it will go
back on the market again...but this time, it will have a marble countertop in the
kitchen, and it will have stainless steel appliances in the kitchen (all brand-new,
since Bob, the handyman, "fixed it up"). And it will usually have a bathroom
that is totally redone, and it might have tile floors...but the walls of the house,
or the plumbing, or the roof, or some other major component of the house's
structure, will not be in top condition. Which was why the person that they
originally bought the home from let it go in the first place...
And the aspiring property-flipper runs out of money and the house is
foreclosed on again, and this time, it bankrupts them. So the people in this
category end up worse off than if they had never bought a home. They have
now lost money. Big money. And they have ruined their credit. And all of
this happened, because they THOUGHT they knew what they were doing,
but they bit off more than they could chew.
In actuality, unless you are a building contractor by trade, unless you
have access to an inventory of parts and experienced labor, it's almost
always a better idea to ONLY look for a foreclosure property that is in need
of cosmetic repairs only - carpet, paint, appliances. That's all. Because usually,
if an aspiring foreclosure-buyer goes past that, then it's beyond the scope of
their expertise, and they should stay away from purchasing that home.
***Critical Common Mistake No. 2 - Once again, the moral of the story
is identical - always use the services of an experienced buyer's agent when
buying a home of any kind in any town or city, anywhere in the world.
Only an experienced real estate agent who knows the area and has lived and
breathed it for years, can help you steer clear of purchasing a home that is
overpriced and situated in a neighborhood where property values are
overstated, or just flat-our declining rapidly. Just because a home is listed at a
certain price, that doesn't mean it will SELL for that amount of money.
And you need to know what actual houses in any given neighborhood,
are actually selling for, whenever you are considering buying a home.
(scroll down to continue).
The online asking price, and the actual reasonable selling price, are
two entirely different animals. And that's why using experienced agents
is so vital to success.... (scroll down to continue).
What the home buyer REALLY needs, is the
best real estate investment possible.
The best home for the money, a home that offers the
highest potential rate of return for the money.
So the truly smart plan involves looking at all the available properties
that meet that description. The smart plan involves securing the services of
an experienced real estate agent, who understands the big picture in the
area where the buyer wants to purchase a home...
And then it's a simple matter of communicating your specific needs
to that experienced buyer's representative - and then taking that experienced
buyer's representative along with you, to actually look at houses after you
have narrowed down the possible choices of houses that might meet your needs.
And then, the smart buyer merely has to UTILIZE and RELY ON that expert's advice,
and select the home that truly meets their needs in all respects.
What most people are truly needing, when they express an interest in
buying "foreclosures", is the best value for their money.
So it's always a wise idea to put new houses into the mix, and resale houses and
foreclosure houses into the mix, and everything else that might meet your needs.
And then take a look and see where that "best buy" really is, and then select
that particular home, property, or piece of land...
I will be ready to help you, whenever you
might need me. And my services won't cost you
an extra penny. Just call for a free consultation
Doing this will cost you nothing.
But not doing it can cost you a fortune.
I am here for you...
David Haase is a REALTOR® with HomeSmart in Phoenix,
Arizona. David's wealth of experience as a REALTOR® has given
him a keen eye for spotting superb real estate values. David Haase
specializes in helping his clients buy and sell homes of any type at
all in the greater Phoenix Arizona area. A longtime resident of the
Valley of the Sun, and a successful, licensed agent for many
years, David Haase can help you find your own personal safe
haven right here in the beautiful Valley of the Sun...
call David Haase direct at 602-793-6548.