Real Estate Information

One of my favorite questions I get asked daily in this Real Estate market is, "Do you have any foreclosures?".  I think alot of people are confused about the term foreclosure and are using the word as a overall word in the market place. Huh? Let me explain. When some one asks me do I have any foreclosures, I ask them what do they mean. Each individual has a different idea of what is exactly a foreclosure. For instance, they maybe looking to buy a home before a Home Owners goes completely bad with the Bank. Completely bad with the Bank now means that they are being escorted out their front door. This then would be a pre-foreclosure and a contract taken at this time would most ikely be a short sale. If the Home Owner is not making anything to walk away from the home, then it is a short sale. The Home Owner may then be asked by their lender to sign a committment letter to pay the lender back the difference the lender is losing. From experience most Home Owners walking away with nothing are going to tell the lender to take a flying leap. Then we have the actual foreclosed property. Great deal, think again. In order to by the foreclosed property before the bank buys it back you must by it at the Sheriff's sale, or as they call it, "on the steps". This home is locked out to the public so you do not get to see the home before purchase nor are you protected from any liens. You must do your homework first before buying these homes to see if you are not only buying someone's home but their problems. Ok, so it would be a great deal to buy the home on the steps, you need 10% that day in a Certified check and the rest of the money in cash within 24-48 hours depending on the county. Got cash, done your research, got home. No cash, bad research, got a big problem. Then there's REO's. This is where the lender bought back the Home at the Sheriff's sale because no one else did or wanted too. These homes are on the Market place with a Realtor, you do get to see the home first, and can make an offer. 9 times out of 10 they are priced extremely good already, some have been slightly cleaned up, others watch where you walk. These are good deals. Now, how low will the bank take for a home they own? Be fair otherwise they will hang onto it until someone else is fair. Another 50% off, is EXTREMELY rare and only if the home has been sitting almost over a year. Otherwise they normally price it so that you are getting a deal and still bringing the home up to par with the others around it or at least alittle lower. So, do I have any foreclosures, sure what stage would you like that in?  Whatever stage MAKE SURE your agent has done these before otherwise everyone could be in big trouble. There is a reason everyone does not do this purchases!!!!

1. Your first step should be to plan your project carefully. Gather photos, make sketches, write a description. This will help you accurately convey to the contractor what you want the finished product to be.

2. Get at least three written bids for the project, but don't automatically accept the lowest bid. A higher bid may be worth the price in better materials, workmanship and reliability. If you get a very low bid, the contractor may have made a mistake or forgotten to bid on everything you wanted. If they have deliberately low-bid, they may use cheaper materials or take shortcuts to make a profit.

3. Most states require registration and/or licensing.  Visit the site  www.nationalcontractors.com  it  provides a starting point for your state and type of construction.  Be sure to verify the contractors license, if licences are required in yourstate, be certain to ask to see your contractor's licences and be sure that it's not expired.

4. Always ask for references and then check them out. Look at the projects and ask the previous clients if they are satisfied with the quality of work done, if it was started and completed on schedule and if it is complete. 

5. After you have decided on a contractor, make sure that the contract they provide is clear and that you understand it.  To avoid any disputes the contract should outline the following:
• A detailed project description
• A list of necessary materials
• A clearly defined start and end date for the project and a statement that the final clean up will be done by the contractor
• The contractor should list his warranties for his work, the length of the and what is included within that warranty
• Contractor's guarantee that he carries liability insurance and worker's compensation coverage
• Finally, the total price for the project should be clearly outlined as well as the agreed upon payment schedule

Working with a contractor takes some planning and research and be sure to hire someone you feel comfortable with.  Everyone has heard horror stories about contractors but you do not need to be a victim.  Use this tips to help you find the right one for you to get the results you want.