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10 Tips for Investing in Foreclosed and Short Sale Properties

1. Begin your search here at www.getorlandorealestate.com. Here you’ll have direct access the Multiple Listing Service (MLS) of the entire Central Florida area. Select the short sales, foreclosure properties and/or distressed properties you are interested in seeing. A member of Karen Arbutine & Associates will contact you to setup an appointment to view the properties you are interested in. They will also have access to other properties that have just come on the market that you may be interested in.
2. By having Karen Arbutine & Associates on your side you will have a team of highly trained and knowledgeable REALTORS® who can help you to determine if you are making a good deal and that will help put together a strategy for making an offer.
3. With distressed or foreclosed properties, time is of the essence. Purchasers must close on the date specified by the agency, and cannot close after this without penalties of $25-200 per day.
4. It takes 1-3 weeks to qualify a loan. If you are approved for a loan, make sure you are qualified by your lender as soon as possible. If you are paying by cash, make certain funds are available. When the offer is accepted by both seller and buyer, your REALTOR® will submit the ratified contract to the lender and closing agent. These steps will begin the process of a successful real estate transaction.
5. When purchasing a distressed property, it is a good idea to get the home professionally inspected and appraised. It’s also a good idea to obtain 3-4 bids from different contractors to estimate costs of repairs, if you do not plan on doing the work yourself.
6. If you are going to sell the property after rehabilitating it, ask your REALTOR® to research similar properties in the neighborhood to ascertain market price. This is what is called a Comprehensive Market Analysis.
7. Keep all records for tax deductions. Any expenses related to the purchase, repair, or maintenance of the property may qualify. Meticulous records are key to a profitable real estate venture.
8. The title you receive after purchasing a distressed or foreclosed property is a special warranty deed rather than a general warranty deed. Some buyers are alarmed by this, but there is no need to worry. The purchase of title insurance protects the buyer. Each lender purchases insurance to protect the loan as well. Titling insurance should be obtained by the property purchaser. It is always offered by the closing agent. Consider using an attorney instead of a titling company as your closing agent. An attorney is only $50-75 more than a titling company. A real estate attorney can remedy any situation that may arise. Therefore, they are more efficient representatives on time sensitive foreclosure properties.
9. Foreclosure properties require special addendum’s and special contracts by the individual bank and HUD office (where applicable).
10. Foreclosure properties are potentially the most profitable, but require the most attention to detail. A REALTOR® experienced in foreclosure deals is highly desirable because the paperwork must be in order to submit a proper bid, and timeliness is critical.

If you are interested in purchasing a distressed or foreclosed property in the Central Florida area please contact Karen Arbutine & Associate today at 888.727.7778. They are a team of highly trained and knowledgeable REALTORS® that are ready to help you find the perfect deal.

 

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Karen is in the News Again Sold $8M Seminole County Home - Sale Price Breaks Record Click play on the video to the left. As featured on: MSNBC: Sales Price Breaks Record Orlando Sentinel: Record $8 million for Longwood mansion Orlando Business Journal

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