10 Tips for Investing in Foreclosed and Short Sale Properties
- Begin your search here at www.www.getorlandorealestate.com. Here you will have direct access to 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 set up an appointment to view the properties you are interested in. They will also have access to other properties you may be interested in that have just entered the market.
- 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. Their training and expertise will help you put together a strategy for making an offer.
- Keep in mind that distressed and foreclosed properties must be handled quickly. Penalties of $25-200 per day accrue if the closing date extends past the date set by the agency.
- Qualifying for a loan will take 1-3 weeks. Make sure you are qualified by your lender immediately after being approved for your loan. Have your funds available if you have chosen to pay by cash. When the buyer and seller have agreed on an offer, your REALTOR® will submit the ratified contract to the lender and closing agent.
- One of the most important things to do when purchasing a distressed property is to get the home professionally inspected and appraised. It is also a good idea to obtain bids from several different contractors to estimate the costs of repairs unless you plan on doing the work yourself.
- If you intend to sell the property after renovating it, ask your REALTOR® for a Comprehensive Market Analysis, or the market price of similar properties in the neighborhood.
- Any expenses related to the purchase, repair, or maintenance of the property may qualify for tax deductions so be sure to keep detailed and accurate records and receipts.
- Take notice that after purchasing a distressed or foreclosed property, the title you receive is a special warranty deed rather than a general warranty deed. No need to worry as the purchase of title insurance protects the buyer. Each lender purchases insurance to protect the loan and titling insurance should be offered by the closing agent to the property purchaser. Using an attorney instead of a titling company as your closing agent is only $50-75 more than a titling company and can remedy any situation that may arise. Therefore, real estate attorneys are more adequate representatives for more time-sensitive foreclosures.
- These properties require special addendums and contracts by the bank and HUD office (where applicable).
- Though foreclosure properties have the potential to be the most profitable, they require the most attention to detail. A REALTOR® experienced in foreclosures is highly desirable due to the paperwork necessary to submit a proper bid in a timely manner.
If you are interested in purchasing a distressed or foreclosed property in the Central Florida area please contact Karen Arbutine today at 407-928-3788 They are a team of highly trained and knowledgeable REALTORS® that are ready to help you find the perfect deal.