Bargains - Bargains - Bargains...

Don Johnson — Fri, 24 Apr 2009 05:25:00 GMT

Everywhere you turn it seems now you find a foreclosed "bargain" property. The fact that almost every single one of them is being eaten up at rates faster than they can hit the market by investors isn't leaving much for the "first-time" homebuyer. What many of these investors are doing is what is called "Wholesaling" in their industry. So by the time it does make it back to the end-user/buyer that bargain has now turned into retail junk.

So what is the theme of this blog... simply this... more than ever... CAVEAT EMPTOR... Let the buyer beware!

Before just jumping into some investors "buyers list" be sure that you check everything there is to know about the property being offered. Chances are you are just buying a flip that no work has been done on before you came along with a nice retail priced offered. Markets like this offer big opportunities for less than scrupulous people to take advantage of novice investors and first-time buyers as well as high-risk buyers. Be careful!

Before buying make sure you;

Check the public records to see who owns the property
Have a title policy prepared on the property
Have the home inspected by a company you find and hire
Have the home checked for termites
If it has a pool, have it checked (pools are expensive)
Checking all the AC/heating componets is imperative
Making sure the electrical and plumbing is in good order can save you thousands... plus insurance companies have great concerns regarding those facets of a home since they cause the most damages...
Get a detailed analysis of what repairs are and will cost you
Make a detail budget for the real costs of a home (I will post another blog regarding real costs of homeownership)

Without using due diligence, buying a home today can be a money pit when you thought you were getting a bargain. Remember this, that just because the price of a house is $100,000 less than three years ago... that does not make it a bargain.

Homes have dropped in value across the world, not just here, and banks have steeply discounted what they were owed on the property, BUT... most of these properties have sat empty for six months or longer and have had major damage caused by elements and vandals, not to mention many of them were in disrepair when they were sold for the inflated prices of yester-year already, so what seems to be a bargain at the discounted price today, does not make a bargain for todays prices.

I highly recommend you find a knowledgable real estate licensee (always check to see that persons license is active at www.MyFloridaLicense.com) and utilize their services. 99% of the time the seller pays the agents commission even when they represent you the buyer, ask first to be sure of the agents policy. The worst thing a novice investor or first-time buyer can do is go into the market after reading some information on the internet or a get rich guru's book thinking they can handle the deal. Banks, investors and savvy agents will tear you apart. Hire someone to be on your side. It will not effect the sales price of the home and a good agent will get you abetter price, concessions or both.

For more information regarding my services and to view my resume' simply go to my website at:

www.FairMarketValue.info

I hope you have found this article to be helpful and interesting.

Any suggestions, please email me: homesbydonjohnson@hotmail.com

About the author: Don Johnson is a licensed Broker Associate with Xcellence Realty, Inc. Born and raised in Orlando, Florida and a sixth generational Floridian, he has a vast knowledge of the real estate environment throughout Central Florida. Don has an Associates Degree in Real Estate and is also a Florida State Registered Real Estate School Instructor. Uniquely qualified to help every level of buyer and seller and an expert in Florida real estate contracts.

You can call him direct Mondays thru Fridays 9am-5pm at 407-462-4992.

Central Florida Foreclosures

Bargains - Bargains - Bargains...