The one common question that all Buyers seem to be asking is "How can they get the best deal out there?" As a leading Agent in the Manchester NH area, I get to see a variety of types of properties and types of sales. I have pout together this blog to break down the opportunites that may get you the best deal. i often get flooded with questions regarding foreclosures. I have put together the TOP 5 items you need to know if you are looking to buy a bank owned home.
WHO IS REPRESENTING YOU? : You should know that the listing agent represents the seller. there are some advantages working directly with a listing agent if you feel comfortable with buying. If not you may want to hire a buyer broker who is WELL EXPERIENCED in the type of sale you are looking to buy. An inexperienced agent can hurt more than help. You can usually hire a buyer broker at no cost to you, they get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing. This way they can get the information for you and you will have someone assisting you through each step of the buying process.
BUYING A BANK OWNED HOME
1. GET PRE-QUAILIFIED: Before even looking at a home you should get pre-approved for a loan. No bank will look at your offer without it. Meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any mortgages that you may quailify for. You should then tell them you are looking at bank owned homes so they can provide you with a list of what condition the property needs to be in for you to be able to get a mortgage.
2. MAKING AN OFFER THE HOUSE: Before making your offer you should know that most houses are sold "AS IS". The banks will not re-negotiate after a home inspection or make any repairs. Your best chance to get the bank to make repairs or credit you for repairs is in your initial offer. You shoud inspect the property before you put in the offer. If you dont want to spend the money for some reason, then when looking at the home you are going to need to look at the well, septic, roof, siding, windows, heating system, look under the sinks, in the basement for signs of water or mold, stains on the ceilings and anything that sticks out or if you are getting an fha loan, any safety issues.
Before making an offer, you should assess what the house is worth in todays market and deduct for any repairs needed. Do not base your offer on a percentage off an asking price. You dont know if the bank priced the house higher than market value, already at market value or priced it way below market value.
3. THE OFFER: In your offer you should make sure you attach your pre-quailification letter, you should make sure you put a closing date of 30 days or less, make sure your deposit is at least 1% of the sales price and it is a cashiers check. Try and avoid any contingincies other than an inspection and mortgage contingincy. Do not put any expiration dates in for the bank answering the offer.
BUYING A SHORT SALE
1. UNDERSTANDING THE PROCESS OF THE SHORT SALE: Before you start looking at homes or completing research. you need to know that the basic premise of a short sale is. When a home owner owes more than what the home is worth in todays market, they ask the sellers bank to approve a sale of the home at the current market price.
2. MAKING YOUR OFFER: First ask if there are any other offers submitted. Ask if there were any offers accepted that the buyer withdrew. It give shints on how far along in teh process the seller is. Your agent should then gather what the home is worth in todays market and base your offer on that. Make sure you include any work/repairs that need to be completed in your initial offer. the bank will not likely renegotiate after accepting an offer and then you find soemthing in a home inspection. Do not put any deadlines on your offer, the bank will not follow them, the process is what it is, it needs to take it's course. Be prepared to wait 4-8 weeks for the bank to complete this process. They will check to see if the seller is quailifie dto complete a short sale, they will order an appraisal to check the value and then make a decision.
If you are looking to buy or sell a home in New Hampshire, please call us first. We strive to provide the best in personal and professional service through each step of the buying and selling process.
We offer * FREE * BUYER REPRESENTANTION - ask us how we can help you buy a home here in New Hampshire. (*please contact us for details and conditions*)
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If you are Looking for a Real Estate Agent you have come to the right place. Scott Godzyk is a Full Time and Local agent ready to serve all of your Real Estate needs through each step of the buying or selling process. We are proud to be locally owned and operated.
If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you.
Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Ssles, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email firstname.lastname@example.org. his website is www.ScottSellsNH.com.