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Top 10 mistakes you need to avoid

Top 10 mistakes you need to avoid

A smart buyer always know what he or she wants. My expertise knowing where to find them a great investment property that comes with huge potential while minimizing the risks. Whether you are buying a foreclosure property for investment purposes or an owner occupied property, here are top 10 mistakes and you need to avoid it happen.

TOP 10 mistakes you need to avoid

Top 10:  Knowing the Property and the Neighborhood

Carefully research the history of the property before making your decision. Could this house have been previously used for illegal purposes, contaminated or simply had something unfortunate happen to it (e.g. water damage)?  How’s the neighborhood in this area? It’s not always the case that the cheapest house is the best buy.

 

Top 9: Foreclosure Property is not Always Cheap
This is a very common misconception even experienced investors can have. The Bank or Courts are still looking to make as much property equity back as possible.

 

Top 8: Can you Request for Home Inspection?

  • Plumbing
  • Appliances
  • Asbestos
  • Insulation, roof, windows, HVAC

Top 7: Conditions? Mortgage Financing or Inspection Conditions?

You would need to know if this foreclosure property is allowing the prospective buyers to put financing, inspection or document review conditions in the offer or not. This will have a great impact for prospective buyers and their purchase decision.

 

Top 6: Why is the Offer To Purchase Contract Different than the Offer To Purchase Contract you Wrote Before?

This is common in the foreclosure property purchase deal. The seller often alters all necessary terms and conditions in the Offer to Purchase contract to protect their best interests. So, who is protecting your interests?

 

Top 5: Property Documents

These are vital to any purchase deal. Since this is an ‘AS-IS’ purchase condition, the seller will not provide any property related documents to the next owner. No condo documents, no RPR and any related important property information.

 

Top 4: Price Negotiation? How to or Could you Negotiate the Purchase Price? Do you Know how the Bank or Court Usually Negotiates with the Buyer?

There is no single answer. It’s always case-by-case.

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Top 3: Court Date

The completion and possession date for the purchase is usually set for 14 days following the date of the court order.

 

Top 2: Schedule a viewing. Never miss a detail.

It can sometimes be a challenge to view the property, particularly in situations where the current owner or occupant refuses to cooperate, however it is essential that you see what you’re buying!

 

Top 1: Consult with Peter first

A property purchase is probably the most expensive investment in most people’s life. You can not afford to make any mistake and suffer due to the decision. Let Peter do what he does best and become one of your most valuable resources in any of your future property investments.

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Peter Chen (REALTOR®)