Friday, October 24, 2014

The Most Common Mistakes When Buying an Arlington Heights Short Sale

Despite the upturn in the real estate market, non-foreclosure short sales increased four percent in 2012. Banking regulations have tightened as a result of the lax lending during the real estate boom, however, buyers are still able to get financing if they can qualify. Even more, short sales and foreclosures are still available for purchase if a potential buyer can navigate through the complex process of buying a distressed property.

Top Mistakes Buyers Make

Understanding the short sale process, which can be complicated, and what you are getting into as a buyer will help you to avoid making a bad investment.

  • Forgoing a home inspection – a home inspection should be done by a potential buyer whenever purchasing any type of property, whether distressed or not. Not only does this inspection reveal potential issues with the property but may also provide negotiating leverage when making the offer.
  • Ignoring legal issues associated with the property – a typical home purchase includes a disclosure statement revealing unpermitted renovations or other legal issues associated with the home; however, because bank-owned properties often sell “as-is” a potential buyer needs to conduct his due diligence before entering into a purchase contract.
  • Not investigating the neighborhood – looking around the area and talking to neighbors brings added value that cannot be found through a real estate listing.
  • Falling for the property without considering the numbers – a buyer may believe he or she may have found an incredible bargain, however, other factors should be taken into consideration when falling for a home including needed repairs and latent defects in the home not readily visible from the onset.
  • Not accounting for delays – short sales often take longer than traditional sales because of backlog of homes, lien issues or other problems with the property.
  • Not writing contingencies into the offer – although a buyer may want to bring their best offer forward, including contingencies (such as financing or satisfactory inspection) will help protect a buyer’s earnest money deposit should the deal not go through.

The purchase of a home, short sale or not, can be complicated. It is important for both buyers and sellers to obtain legal representation to ensure the rights and obligations of all parties are protected.

Arlington Heights Real Estate Attorneys Available

If you or someone you know is interested in purchasing a short sale property, or any other type of real estate, contact an Arlington Heights real estate attorney today to find out your rights and obligations during this process. The attorneys at the Law Offices of Gilbert C. Schumm have decades of experience providing legal guidance in all types of real estate transactions. Contact the firm today to schedule your initial consultation.

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