Buying Real Estate in a Down Market

Six Steps to Buying in a Down Market

By Mike Colpitts
Editor

Buying a ForeclosureIn these times of economic uncertainty it’s difficult for many people to fathom buying real estate in a down market. But there are 6 steps that may be taken to assure even the most nervous of first time buyers that they’re making the right move.

Let’s face it. Buying real estate isn’t rocket science whether it’s a home or a commercial building. But there are steps that need to be taken to insure success and protection, particularly to ward off future problems.

1: Location Location Location:
May be the oldest mantra in real estate, but it is because what it translates to is “Don’t buy” a place in an undesirable neighborhood or area. If there’s an old junk car in the driveway across the street or the convenience store at the corner has been robbed lately it’s probably better to keep rolling on to the next home.

2: Price Price Price:Much more increasingly important in these days of economic uncertainty is price. That doesn’t mean the price on the home you are buying is going to devalue if you do your home work. It means get the best darn deal on the property you are buying that is possible. It also means negotiate, negotiate, negotiate to “shop” for the best price on property.

3: Opinion of Value
Do all of your home work first. Get a Realtor or an appraiser to give you an Opinion Of Value, and if it would make you more comfortable get a second opinion like you would do of a doctor before surgery. If you have to pay for professional opinions pull out your wallet cheapskate! You’re making a big investment here. Save yourself from any “buyers remorse” or questions later.

Do all of your home work first. Get a Realtor or an appraiser to give you an Opinion Of Value, and if it would make you more comfortable get a second opinion like you would do of a doctor before surgery. If you have to pay for professional opinions pull out your wallet cheapskate! You’re making a big investment here. Save yourself from any “buyers remorse” or questions later.

4: Home Inspection!
Remember that more than any other. Although home inspectors are not insured in most states for damages or issues they did not catch beyond what the cost of the home report is and state laws vary greatly on home inspections, get a home inspection report outlining what’s wrong with the home. Obviously this applies to homes and condos, but apartments and other residential dwellings are also likely to have issues. This way at least you know what you’re getting into.

5: Insure, Insure and Insure
It’s said that you can’t buy enough insurance. That may be debatable and there are serious flaws in the system these days, but Title Insurance is a must even though it’s not required in all cases. Insuring the title against defects protects the consumer even if you’re buying a foreclosure. Make sure you can get a policy on the place or run for the hills.

6: Old Fashioned Mortgage
Way too many people are learning that they should have opted for a good old fashioned mortgage in these days of the credit crunch. Banks and mortgage companies are in the business of making money. It’s their bread and butter and the money exchangers changed the rules of the game on millions of consumers, who are getting foreclosed as a result of adjustable rate mortgages that are getting way too high to handle. Conventional mortgages are being foreclosed in increasing numbers in these days of the credit crisis.

Do all of your home work first. Get a Realtor or an appraiser to give you an Opinion Of Value, and if it would make you more comfortable get a second opinion like you would do of a doctor before surgery. If you have to pay for professional opinions pull out your wallet cheapskate! You’re making a big investment here. Save yourself from any “buyers remorse” or questions later.

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