When buying a short sale home, there are a number of areas where you can run into a problem, so it’s important that buyers are aware of these potential pitfalls so that they can avoid costly mistakes and errors when purchasing a short sale investment property. That’s precisely what we’ll explore in today’s article from The Short Sale Gal, Kristine Zelazo!
Really Research the Property
Under normal circumstances, the homeowner would be required to make certain disclosures. This isn’t always the case with a short sale or with a bank-owned property (also called a REO.)
Most states have far more lax rules concerning the sale of short sales and bank-owned homes, which are generally an “as is” sort of sale. Disclosures are not always required and even when they are required, the bank may not be aware of the issues that would typically be disclosed.
This makes it even more important to perform research into the property that you’re thinking of buying.
A typical disclosure statement would indicate if a house is located in a flood plain or if the property underwent any unpermitted renovations. So it’s vital that you ensure that any and all additions or renovations were permitted and approved. If not, you could run into problems when you go to resell the property.
Never, Ever Skip the Home Inspection
Since you’re buying the property as-is in most cases, you’ll want to ensure that you know precisely what you’re getting. Therefore, you’ll need to hire a professional who can perform a home inspection. This should be considered mandatory for all real estate investment properties.
It’s also wise to call in an experienced contractor if the property will be a fix-and-flip. You’ll need to get an accurate price quote on what you’ll need to spend on the property. This figure will need to be considered when making your offer.
Keep Your Personal Preferences Out of the Equation
It can be challenging for many newer investors to look at a property from a more objective, business perspective. After all, most only have experience buying their own home, so they view it from this perspective.
But this can cause problems because emotions play a major role when picking out your next home. These emotions hold the potential to serve as a liability when you’re dealing with a short sale, REO or other investment property.
So keep your own emotions and your own personal likes and dislikes out of the picture. Instead, focus on this as a business transaction. Consider how the general public will view the property, as that’s what matters when selling the house.
Ready to Get Started in Real Estate Investing?
If you’re getting started in real estate, consider working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo. Getting started in real estate investing can be somewhat challenging, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 786.570.0360.