There are several key advantages of buying a foreclosed home it could be tremendously rewarding as far as investment is concerned. It is crucial to ask questions before purchasing a foreclosed property like – for how long has the property been on the market? You’ll be paying cash or mortgaging? How much money will you have after the purchase? So on so forth, if you have answers for such questions then you are rolling in the right direction where it clearly gives a heads up for purchasing it.
We would also like to enlighten you further on the ways to buy a foreclosed property as it comes in multiple forms like short sales or pre-foreclosures, we hope it helps you get the right property.
Buying Foreclosed Property Through Auctions
It is essential for you to understand that foreclosed properties are sold as-is. If the house has shabby exteriors of worn-out floors, the property will be auctioned anyway with prevailing faults.
The home buying process is much simpler in auctions where the highest bidder wins even if it is for a small amount this particular type of bidding is known as an absolute bid. There is another way of bidding also called as the reserve bid in which the property has to be auctioned for the given price or else the lender gets the title. The purpose of selling foreclosed properties is to achieve the highest price on them.
If you have made up your mind to buy a foreclosed home through an auction then for obvious reasons, you won’t be able to get your hands on a walkthrough. Paying for an unevaluated property could be a bane for your pocket as there are clear chances you’ll end up paying a lot more than anticipated due to additional repairs that come later in the play. As soon as you buy the house, you are designated as the rightful homeowner of the property where eventually you stand liable for all the necessary home improvements that occur post purchasing.
Hence, even if you have bought the property for a cheaper cost through traditional way, repairs can make your pockets bleed money. Do your thorough research and talk with brokers who are willing to work with you and try not to go into the process blindly.
Buying Foreclosed Property Through Banks
There are mainly two types of foreclosed homes which are –
- REO(Real Estate Owned) Properties
- Bank Owned Properties
Both of the above foreclosed properties are under the ownership of the lender which is mostly the bank, the only way of differentiation is the stage of the foreclosure process. Before you proceed with the buying of the property at auctions or through banks make sure you get a mortgage.
Whereas buying a foreclosed property through cash could be the soundest option it may be not so feasible for many homebuyers. If you have thoughts on buying a foreclosed property with the help of a loan then it is advisable to prequalify and get a preapproval letter before you start with the research and proceed with the home buying process. The latest preapproval letter from the lender or bank will aid in providing detail of how much money you can have in the form of a loan, based on the lender’s evaluation of your credit score or income.
Buying Foreclosed Property Through Brokers
The professionals know the best, real estate agents are highly experienced in their stream they will assess your property inclusive of factors like the current condition of the house, locality, and neighborhood. If you are a first-time foreclosure buyer we advise you to get in touch with a broker who knows the tricks of the trade as far as REOs come into play. Hiring a real estate agent would surprisingly cut down your legwork and time and steer to your desired property.
Although it is the most advised suggestion for new home buyers, we would also like to inform that buying a distressed property through agents could be rash on the budget as you will have to pay the commission costs to him or her which makes it less fair deal.
Make Cash Offer On House In Foreclosure
There are companies that buy houses for cash in New York and sell it to you post flipping. ‘Elite Properties’ is one such company that help buyers and provide necessary services to those who are facing foreclosure, they will also help you in stopping foreclosure. These companies buy the foreclosed properties and renovate it by providing necessary amenities to the future consumer. They do the primary improvements like sewage repairs and HVAC repairs including some renovation of tiles or ceilings. Furthermore, these remodeled properties are listed out in the market for sale at modest prices for homebuyers that wish to buy foreclosed properties at reasonable prices.
Companies that buy house for cash are saviors if you are running out of time, but have your eyes on the dream property. By paying cash for foreclosure properties, you can buy your dream house without worrying about the renovation, as all you get is brand new properties with no flaws. They will propose the final deal and give you a moving date according to your specifications. All you have to do is finalize the cash offer and get things done. You require no paperwork or any kind of legalizations at all.
Last Words Before Purchasing A Foreclosed Property
Given above were the four ways of buying foreclosed properties. After reading the blog above, you will be able to make better decisions for yourself that will take you closer to buying your dream home even if it is a distressed property. If you are residing in New York City and wish to buy and sell properties then get in touch with ‘Elite Properties’ they will provide you with the exact solutions for all your real estate crisis and guide you through the right path.
There is a myth between homeowners that selling your house to a cash buyer will relatively give you fewer gains in comparison to a realtor. Homeowners believe that going the traditional way is always the best way. Whereas, only a handful of them know selling your home to a cash buyer will give you maximum returns while cutting down your labor of research and paperwork.
Here we would like to shed some light on the topic, stating which is a better choice for the homeowners, selling the house to a cash buyer or a realtor? Given below are some reasons, why selling your home to a cash buyer is a better deal over realtors.
Selling Home Through Realtor
When you list your house in the real estate market with the help of a realtor it will always cost you a decent amount required for selling. Realtors will sell your house only when it is ‘sale ready’ ‘or market -ready’ as it is articulated in the real estate arena. It is stated one should never judge a book by its cover, in the real estate world it’s completely contrary. Every house will always be judged by its external and internal conditions, as it is a tangible asset.
A realtor will make sure that your house is in great condition and has curb appeal, in order to accelerate the sale process and to sell the asset in a short extent of time.
Home Improvements Require Money
A buyer will never buy a house which lacks amenities. In such a case, a realtor will evaluate the property in order to see where the house requires improvements and will ask you to the required as earliest. Here, conclusion boils to the point that if you want to sell your house through a realtor, your repair projects will require loads of dollars.
As people today are much smarter, they know where to spend how much. Everybody loves life at ease which is why home buyers today expect a home that is full of luxury and amenities by spending least funds.
If your house lacks the basic facilities, it ultimately drops its curb appeal, which eventually decreases the list of potential prospects. If the above case comes into play, your home won’t even reach an appraisal.
The biggest problem, while you are selling your home through a realtor, is the time on the market. The inclination of your home, sitting on the market, could probably prolong as the sales are not defined. Also, if a seller has taken a decision of selling home in a particular time-frame, the realtor will extend the time for reasons like processing of home sale. This thing affects the sale, lengthens the waiting period and creates obstacles in your planning. Furthermore, there are a bunch of carrying costs that are levied while your home is listed.
Carrying costs is an amount that is required if your home is on the market for sale, this is also known as owning cost of an asset if it has to be sold. These costs will cost you a lot of capital, in the form of payments like property tax, insurance, and utilities (for improvements or upkeep).
Annoyances With Mortgages
If a buyer requires a mortgage to purchase your house he or she will also bring along problems like inspection and appraisals, as a seller, it will be a hindrance in the home selling process. These requirements arrive from the creditor’s side, the bank or the lender would thoroughly go on with an inspection to verify if the buyer is genuinely buying an asset.
The contract would consist of contingencies like mortgage approval, insurance approval, appraisal, closing date, scrutiny of the house and a requested satisfactory walk-through. In the worst case scenario, if your home doesn’t reach an appraisal, you might want to re-list your house or make a deal for less. Here, you are not only wasting your time but also funds for no gains.
You Are Just Another One In The Queue
The line of clients for the realtors is always huge and constantly stacking up with more, and you are just another one in the queue. Here, you have to keep in mind that if your agent is stacked up with too many contracts, your home will certainly not get the required attention. You must make sure that your realtor does his due-diligence with utter devotion because no seller likes to witness a deal that falls through.
Commission and Added Charges
Now, when you have spent a lot already, you need to make space for some more. There is a question popping in many homeowners’ mind that, why you don’t get maximum gains on your property after selling it at great cost? The answer is commission.
The chief cause of a seller not receiving the desired amount is the realtor’s commission. You have to drop the anchor of money down in the sea for more 6% commission charge to your real estate agent for the sales, as well as you’ll be entitled to pay for title insurance and tax proration – which makes it all the more costlier. The secret to making up your mind for the flowing money is, keep aside 10-12% of the purchase price as commissions, administrative fees and closing costs.
Selling Your House To A Cash Buyer
Cash property buyers are people or companies, who buy your property without obtaining a loan. Selling your home to cash buyer is the soundest option in the home selling process, which saves your pocket from flooding money. Whereas, selling your home through a realtor will give you a lot of headache of hiring a real estate agent and then waiting for the rest of the processes, which costs you money.
Sell House As-is Fast
Cash house buyers use the terms ‘we buy
No More Repair Problems
A real estate agent will advise you to stage your home and hire a photographer to click pictures for listing them in the market. You might want to go down that road if you have a lot of time and money to spend. Usually, homeowners who want to move quickly will eventually opt for cash sale as they might have to buy and sell
As stated above if the buyer has taken a loan from any or lender or has applied for a mortgage, it will eventually bring a lot of contingency clauses like inspection and appraisal, which as a seller you’ll have to satiate. But if you prefer skipping the traditional way and choose cash buyers over realtors, you’ll save yourself from many hassles because companies or buyers will give you cash or saved capital while closing the offer. These buyers are primarily investors, so they actually know zilch about the area, your home or neighborhood. Hence, they visit your house to examine it and propose an offer in as less as a week.
No Commissions Or Closing Costs
In simplified terms, by choosing the non-traditional way, you’ll be directly saving 6% commission of the realtor. Here, the customers don’t rely upon the quality of your residence as they will buy the house from you then apply the formula of flip – rehabilitate – sell. By doing this, you will obtain all the money from the sale and would also be saving the predicted prolonging waiting time.
Speedy Sales And No More Working According To Timelines
Companies that buy your house for cash buy your home even if it is not market-ready, the buyer will buy your property as-is and close the deal in as less as 7 days, added reward – the buyer does not require finances for the purchase of the house which makes it a faster sale.
When you sell your home through a cash buyer, you don’t have to work according to someone else’s timeline or change your plans according to the buyer. The company will buy your house instantly after viewing the property once and then flip it, later after which they will sell it to other potential buyers. Here, the process turns out to be much faster than the anticipated time-frame, which helps you move faster to the new destination without losing a significant amount of sale money and time.
Here, the process turns out to be much faster than the anticipated time-frame, which helps you move faster to the new destination without losing a significant amount of sale money and time.
Fall Through Of Sales
Financing is the fragment where maximum fall-through of sales and foreclosures occur. It is a stressful part because your home is already listed in the market for sale. You have a potential buyer but, somehow the buyer does not qualify for the loan or they just back-out from the contract. You can barely predict the possibilities.
The best thing you can pick over anything is to find a cash buyer or get in touch with our company ‘Elite Properties NYC’ we buy
Advice That Matters
We comprehend that home selling is a daunting process, where you are stuck in the confusion of distress. Your situation is desperate, and you are unquestionably searching for a solution, that works in your favor and gives you maximum gains. We have stated many benefits of selling your home to cash buyers for speedy sale and decent gains.
If you have queries regarding selling a house for cash in New York and you are residing in New York, feel free to call us, rest assured we will provide you with the best solution for your real estate problems.
Buying your house might have probably been one of the most significant investments you’ve ever made as a homeowner. But as time passes you might feel like your “All American Dream” fell a bit short.
Spending every lunch break and recess time surfing through the local real estate listings might help you in knowing the current market value of your property, but it’ll never tell you the right time to sell it. Trusting your basic instincts and moving forward with selling your house might lead you to a large pit rather than filling your bank with dollar bills. Well, if you are confounded with the jejune offers you got for your property, step-down from selling your house. Our life can take unrealistic and unpredictable turns here and there. This might leave us in a financial crisis or even a mental crisis. Maybe it might also force you to sell your hard earned house to meet the immediate money needs. But, you must make sure that selling your home should be your last resort before jumping to conclusions.
Knowing the right time to sell your house has always been challenging and a daunting task. One must be aware of all the market trends and anti-swindler strategies before ripping off the Band-Aid and selling his/her house. Here are some signs which can help you to understand that it is officially the time to part ways with your house…
1. Your Family Grew and Doesn’t Fit In Anymore
Your current house must have felt perfectly comfortable when you were newlyweds. Well, a 2bhk apartment or a condo must have been sufficient for both of you. But as time passed by, you began thinking of adding a new member to your family. Times were joyous and momentous with the new baby’s arrival, and you were living the dream. Fast forwarding a few more years, now you have a dog, toddler, and a new baby on the way which makes your house ill-fitting for accommodating all. This is the moment you must decide you need a bigger home to provide the needs of everyone.
While searching for the optimal house, make sure your kids get independent rooms to sleep in and have ample space for storing all toys and amenities (especially for babies). Getting a house within a limited period might be challenging, so it would be a wise decision if you start looking for remodeled homes or hire an experienced real-estate agent.
2. You Know The Market is Active and Strong
Living in a potential property market can be intriguing and at the same time exciting. The constant proposals from real-estate agents and brokers making your mornings miserable and the periodic ‘sold-out’ boards that pop up in your neighborhood might urge you in selling the house. And don’t forget how your neighbor managed to gain a fortune just by selling his/her house.
The key to finding whether it’s the right time to sell your home depends on the market. If the market is hot, you must go for it without any second thoughts. For example, consider you bought your house in late 2008s for a whopping $870,000. Within a decade your locality has flourished, and the property market has shot up with the arrival of a new highway or a metro station. Now, you might have offers for your house starting from a minimum $1,050,000. You got two options, either wait for the price to upsurge more or sell it now and start fresh somewhere else with a hefty profit.
3. You Are in Need Of Some Immediate Money
We’ve mentioned how life can take unexpected turns. If selling your house is your only way out from a gruesome incident, then you must go for it. But, make sure selling your home is your last resort and not your first option. The money you get from selling your house can indeed help you out from this temporary financial situation, but it will leave open the gates for a homeless life if you don’t plan the whole situation with negligence.
Selling your house to “we buy houses for cash” companies might be the best alternative if you need some immediate money.
4. Your House No Longer Fits Your Lifestyle
If your lifestyle has changed drastically in these past years and your house isn’t providing you with all your needs, then you must consider selling your home. Well, what would you do with a mansion, when all your kids have moved out and you barely use the rooms apart from the living room and bedroom you sleep in?
Another scenario can be jobs. Your company might assign you to a different place for job purposes which in turn extends your commute. What if your new office is on the other side of the state? Selling your house and looking for a new one in the locality of your new office might be the best possible solution you have. Finding a new home immediately might be difficult. Hiring a professional property agent and signing for a remodeled house can meet your immediate house needs.
5. You Need To Save Yourself From Foreclosure
Facing foreclosure? Selling your home to save yourself from foreclosure is a pretty good idea if you have no other way to pay your defaulted mortgage. Inform your mortgage provider and agree with listing your house under short sales. Short sales will grab the attention of many property dealers, property agents, and potential property buyers. If you are lucky enough you can land a great deal which can save you both from foreclosure and bankruptcy. Well, all you need is a short sales expert by your side.
6. You Have a Distressed Property
Keeping a distressed property or being an owner of a distressed property is a headache. The trouble of finding a buyer or any interested agents might be challenging. Since these properties aren’t in good shape with almost nil repairs and refurbishments, assigning a proper price tag for these houses can get real tricky. Most of the owners might nod unwillingly for a price tag which is far too less than the market value.
Keeping hold of a distressed property is a hectic situation where the owner might even be willing to sell the property at half the price. Well, it all depends on buyer’s ability to negotiate. So, selling your distressed property won’t help you much financially, but it can eliminate any future complications. Selling your house to companies that buy houses in any condition can be a great opportunity to start your career in real-estate.
There are many “we buy houses for cash” companies in the market. Selling your house to companies that buy houses for cash can help you land a great deal without any hassle. Hiring a real-estate agent might be the best possible decision you can take in selling your house immediately.
The aggrandizement of services that aid homebuyers and sellers in completing their own real estate needs is relatively recent, and it may have left you pondering whether procuring a real estate agent is becoming a relic of a bygone era. Going solo when it comes down to real estate might save you a handful sum of money by cutting down the significant commissions you need to pay the agents. Well, the question is: Would you rather try flying solo or reach out for a helping hand?
Buying or selling a property even in a buyer’s market is challenging and time-consuming. A significant proportion of people doesn’t trust or rely on real estate agents to meet their needs. However, these guys will be forever missing the luxuries of what a real estate agent can bring to their plates. Buying and selling properties indeed take time, and with the help of the right expert, one can surely save a lot of time and make things hassle-free for themself.
Here’s how hiring a real estate agent can assure you in achieving the ‘all-time American Dream’ of owning a property in your name…
1. Hiring an Expert
Rather than being entitled as an agent, they prefer being called experts. Real estate agents are the best when it comes to their line of business. You’ll experience the pinnacle of professional real estate services by hiring a property expert. Right from negotiations to the final settlement of the price, they’ll act as a loyal mediator between you and the seller omitting you from all the hectic formalities and paperwork.
Negotiation is a tricky business, and there’s an excellent chance that the other party can easily bamboozle one without an adequate record of experience in this line of business. A real estate expert has enough experience when it comes down to revealing all the ambushes and deceptions and taking countermeasures. So, whether you are selling a property or buying one, hiring a real estate expert will always give you the upper hand.
2. Are The Encyclopedias of Property Listings
Finding a house with your specific interests can be challenging. If you are a working person who rarely gets time to spare, this becomes even more challenging. Moreover, what if the house with your interests is on the other side of the state? This is where a real estate agent comes in handy! They have an enormous database of property listings that can match your interests. Tell them what kind of house, neighborhood or even locality you need, and they can present you with the shortlisted properties which resemble your attention. All you need to do is pick one.
Most of the real estate agents have a secure and robust network when it comes to property listings. They make use of these networks to keep in touch with all the property owners and sellers all over the state. By hiring a real estate agent, you are not only experiencing hassle-free services but also given access to the network mentioned above of extensive property listings.
3. Saves Time and Money
Roaming around your locality or neighboring state in search of available properties can drastically eat your time and money. Well, we would say there’s no point in drifting along with the current without a destination or goal. With the aid of a property dealer, the path towards your target will be apparent, and you can set the course at full speed. Property dealings always include a lot of paperwork and legal procedures and don’t forget the expenses too. A real estate agent can volunteer for you to take all the trouble of hefty paperwork and costs providing you with the ownership of the property or house.
For example, selling a property which is listed under foreclosure or short sale is pretty challenging and hectic. Most of you might feel like you are going through the most terrible phase of your life. With the property listed under foreclosure or short sales even, interested buyers might back off thinking of all the legal troubles they might need to go through. By hiring an experienced real estate agent, selling your foreclosed or distressed properties will be quicker and more straightforward.
Still not convinced in hiring a real estate agent?
Let us brief you up with a few more scenarios in real estate business. When stepping into real estate business, most of you might have come along the terms like foreclosure, short sales, distressed properties, estate sales, probate sales and much more. Hiring a real estate agent will make it easy to acquire properties which are under these complex scenarios.
a. Real Estate Agent For Foreclosure
Foreclosure of property occurs when the borrower fails in paying the mortgage he/she is obliged to pay the property owner. Even though the number of foreclosed properties are gradually decreasing in number these days, they still do exist. As for a buyer looking for a potential property, there’s a fair chance that a foreclosed property might exactly be the house in his/her dreams. However, the reality is pretty much harsh. Instead of a smiling face handing over the key to the property, you’ll be welcomed with a ton of paperwork and legal procedures which can even last up to minimum seven months. The same happens when you are trying to sell one too.
With a real estate expert who knows his way around the market and its characteristics, selling or buying a property in foreclosure doesn’t plot an issue. Since they are experts in their line of business, finding a buyer for your foreclosed home will be more comfortable. Their motto is to help you by leaving you out of all the troubles providing a hassle-free business deal. You need to select the shortlisted buyers provided by the agent who are willing to give you a fair deal for the property.
b. Real Estate Agent For Short Sales
A short sale specialist or a lawyer? This might be the first question that comes to your head when planning to list your property for short sales. Opting for a short sale specialist rather than sticking to a lawyer can help you in many ways. Since lawyers only know about legal procedures that need to be presented in the court regarding the property they won’t do much help in advising what to do and what not to do when going for a short sale. A short sale specialist has completed thousands of these cases and is much more experienced when it comes to such scenarios. They can even find you a proper buyer for your property who can provide you with fair and desired price. Don’t forget that the legal procedures will be taken over by the agent itself, which indirectly implies they’ll be providing everything a lawyer can provide.
c. Real Estate Agent For Distressed Properties
Distressed properties have always been a headache for property dealers. These are the properties that are rarely maintained or nearly distressed but still packs a punch. Finding potential buyers for your distressed property can be challenging and daunting without a property expert. They are professionals in negotiating and convincing buyers to buy the property. The same goes when you are planning to buy a distressed property to save your wallet. Since every distressed property isn’t approachable even though they look promising from the outside. With an expert beside you who knows what to look for in a distressed property and understand its market value can land you a great deal without hurting your pocket.
The Bottom line
Investing in hiring a real estate agent will always be a boon when planning to buy or sell a property. They can lead and guide you in the right way to meet all your real estate needs.