Connected with Compass

During the last three months, many of us have begun to re-evaluate what we need from our homes. Some desire more space, maybe with a terrace, garden, or pool, while others may be ready to downsize into a low-maintenance lifestyle. Some might be ready for a residence in warmer weather, while others are looking for a cooler escape. 

Over the next few months and subsequent years, there will be many changes made to the places we call home. At Compass, we are connected to the best real estate professionals in regions all across the country who are ready to help you explore and navigate your options. 

With trusted colleagues in over 130 markets nationwide, we’re here to help — no matter where your move takes you.

If you ever have any questions about anything involving real estate, please send us a message, schedule a time for a phone or video call, or give us a ring!

Check out your Credit Reports

Long before you ever make loan application to buy your new home, if you suspect there may be something on your credit report that might cause a problem, you should investigate it.

The federal law requires credit bureaus to share this information with you. In most instances, you may receive one in-file report per year at no charge.

Here is the link for the free credit report: https://www.annualcreditreport.com/

It may be difficult to understand, which is why they will send you a booklet explaining their code system. You may want to make an appointment with a credit counselor to answer any specific questions you may have. Just give us a call and we will help you get started.

If you ever have any questions about anything involving real estate, please send us a message, schedule a time for a phone or video call, or give us a ring!

How To Buy A Distressed Property (Short Sale or Foreclosure)

by Steven Dean, REALTOR, SFR

Distressed property is any property facing a pending foreclosure or already foreclosed.

1) Have Money Before You Shop: Have cash for your purchase or a mortgage approval before you begin shopping for a distressed property. Many owners who are facing foreclosure do not have the time to see if a buyer can be approved for a mortgage. A purchaser with proof of financial ability to purchase has an advantage in negotiating.

2) Be Mentally Prepared to Wait and to Encounter Red Tape: Buying a distressed property is full of delays and possible ways for the transaction to fall apart. It will likely be the most frustrating real estate transaction ever. That’s just one reason that the price is as low as it is.

3) Limit Your Contingencies: Contingencies in a sales contract for distressed property will often cause the offer to be rejected. Consult with your agent to determine which contingencies you can do without.

4) Purchase the Property in As-is Condition: Most foreclosures will be sold in as-is condition. With short sales, many Sellers have not been able to properly maintain the property. There is often deferred maintenance. Be prepared to accept the property in its current condition. If you’re going to do a home inspection, do it quickly and get beyond it fast.

5) Be Ready to Act! Once you locate a property you like, write the offer right away! You want to make your offer before their is competition. Also, bare in mind that every day that passes on a short sale is one day closer to the property entering foreclosure.

6) Evaluate Your Motivations: A purchaser’s motivations need to become conscious and verbalized. A purchaser may want to find a great value in move-in condition with a quick settlement. If that’s the case, a short sale or a foreclosure is not the property to buy.

7) Bottom of the Market: Many people looking to purchase a short sale or foreclosure want to buy at the bottom of the market. The bottom of the market is a historical point, and it’s never known until it has passed.

8) Quick Settlement: A seller of a short sale will want a quick settlement. Typically, the settlement needs to occur within 30 days of the approval of the short sale. A foreclosed property will typically want to settle in 14 – 30 days after the sale is approved. After a long wait full of delays, the purchaser will be expected to act quickly when the time comes.

9) Inspections: It is always advisable to have a distressed property fully inspected by an experienced inspector. Purchasers will want to budget for repairs and upgrades once they own the home.

10) Examination of Title: A title search by a competent settlement attorney is advisable to any purchaser of a distressed property. Don’t expect the Seller to make repairs.

If you ever have any questions about anything involving real estate, please send us a message, schedule a time for a phone or video call, or give us a ring!