1.You are usually buying the property
without ever seeing the inside.
2.You have to be able to put a 10%
deposit down at the time of the sale and then you need to come up with the
balance in 30 days.
3.You will probably have to evict the
former owner from the property which can be a long and tedious process.
If not done correctly the former owner could stay in the property for years.
For these
reasons I suggest that you don’t buy a foreclosure at the Sheriff Sale.
What I do suggest to my clients looking for a good deal is to buy an REO which
a property that has already been through the sheriff sale process. In
part 3 I will give you my top 3 reasons why buying an REO is better than buying
a property at a Sheriff Sale.
When a homeowner doesn’t pay their mortgage for a few months the bank will notify them that they are in default and at risk of being foreclosed on. If a homeowner is unable to get caught up then the bank will start the foreclosure process. The homeowner will then have a set time period to get caught up before the property is foreclosed on. If the owner can’t get caught up then the bank will auction off the property at the sheriff sale.
At the sheriff sale the bank will set a minimum bid of the total debt that is owed on the property. This includes the unpaid balance on the mortgage plus any fees and expenses the bank has incurred. If no one at the Sheriff Sale is willing to pay the minimum bid then the ownership of the property reverts to the bank and the property is now what we call an REO or Real Estate Owned.
Now you could buy a property at the Sheriff Sale but I consider this to be very risky. Check out part 2 of the series for the 3 major reasons you should not buy a property at the Sheriff Sale. As always, if you are looking for more information please contact me directly.
Like the old saying goes, “You only
get one chance at a first impression” and that saying especially rings true
when it comes to selling your home. Of
course we have all seen the TV shows where the outside of a house is
transformed in a day but that is not realistic for most of us so here are 3 simple
things you can do to boost your curb appeal. Invest in low-maintenance
plants, shrubs, and flowers.I usually
suggest day lily’s and ferns because they don’t require a lot of attention. Invest in patio or porch
accessories.A warm and inviting
entryway will almost always attract buyers and entice them into wanting to
explore what’s behind the front door. Ensure the exterior of
the home and the driveway are clean.For
stains that can’t be power-washed away consider using a specialty cleaner that
you can find at your local big box store.
The 1st tactic is to increase the
curb appeal of your home. I advise my
clients to spruce up the home’s exterior with inexpensive shrubs, brightly
colored flowers, and a new welcome mat for the front door. The #2 tactic is staging.Recent studies indicate that staged homes
typically sell 30-40 days faster and for 1-2% more than homes that are not
staged.The 3rd and final tactic is to price
your home correctly.I suggest looking
at the homes you will be competing against and then price your home
accordingly.I know it is tempting to
start high to test the market but this can really backfire.If a home sits on the market too long it
creates a stigma and buyers are likely to stay away.
