1. Be right on top of what is coming out on the market. A good real estate agent can help with this because everything is being funneled through the Multiple Listing Service. Be ready to submit an offer the day it is published because there is a lot of competition for low priced homes.
2. Unless you can demonstrate that there are some costly repairs needed, don’t try to negotiate terms of a short sale. The bank’s answer is going to be “Next?” If you do attempt to get a credit for repairs be sure to submit bona fide repair estimates and the full inspection report.
3. Have your ducks in a row before you even consider making an offer. If you are paying cash or putting 20% or more down, be prepared to show proof of funds. Your statements should not be more than 30 days old. If you are financing, you should have already met with your lender and gotten pre-approved. Any marginally qualified buyer should never make a major purchase before or at any time during the process up to the closing date. Credit will be re-run and banks will have a red flag if additional credit is obtained or there are significant charges on a credit card.
4. Avoid the temptation to put an offer on more than one property at a time unless you can afford to buy more than one. You will forfeit your earnest money deposit if you cancel for any reason other than property condition, appraisal or your loan not getting approved. 5. If you are buying a property at a Trustee’s sale, make sure you check out the property before the sale date. Once you win the bid you cannot cancel. And you could be burdened by other liens, tenants in possession, or major repairs to make it livable.
Audry Wolff
Associate Broker,
Solutions Real Estate,
Gilbert, Arizona
Web:Â www.audrywolff.com/
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