Get more home for your buck!
Owning a home to call your own is still the American dream. Unfortunately, many home buyers find themselves in the frustrating situation of discovering that the amount of home they can afford may not be all that they had hoped for. While some accept defeat and settle for less, others have found a market that allows them to purchase homes below market value, getting them much more home for their money than the traditional methods of purchasing a home. Read below to see how buying a foreclosure or short sale property could save you 20 to 50% during your next home buy.  What is a foreclosure?
A home can be foreclosed on when an owner has missed payments on their mortgage and is unable to continue paying off their home loan to the bank. In this case, the bank takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction and then, usually tries to sell the property to recover the unpaid loan amount. Because banks do not want to hold on to real estate, foreclosed properties can be bought from banks for less than market value. Call (360)312-5151 for a FREE list of foreclosures today! Why buy a foreclosure?
Buying a foreclosure can be a great way to purchase a home at just a fraction of its market value. Below are just a few reasons that homeowners and investors are flocking to the foreclosure market. | • | Low prices. Foreclosures sometimes sell for 20 to 50% below their true market values. Modest discounts of 5 to 10% are more common, but foreclosures are almost always priced lower than homes in the traditional real estate market. | | • | Great fixer upper homes. Many foreclosed homes are 'fixer upper homes' that need repairs, renovation, and tender loving care. By investing a little sweat equity, most homebuyers find that they can make significant profit by reselling the home after some relatively quick and minor repairs. | | • | Lower closing costs. The banks and government agencies that sell foreclosed homes are in a hurry, which means that they are often willing to accept lower offers on down payments, financing options, closing costs, and all the other miscellaneous costs associated with buying a home. Many sellers will come right out and offer buyers great deals and contract terms simply to sell the house quickly. | | • | No move-in delays. Most foreclosures are vacant, meaning that you can move in almost immediately after purchasing the home, without having to wait for the previous owners to move out. | | • | Profitability. Because foreclosures are so inexpensive, they're great options for resale, equity-building, renting, and other investment purposes. You can easily make a tidy profit, and quite possibly make your personal fortune by wisely investing in foreclosed properties. |
 What is a short sale?
In a short sale, the home seller arranges with their mortgage lender to accept a price that's less than the amount they owe on the property. As part of this arrangement, the lender typically agrees to forgive the rest of the loan and as a result, the seller doesn't have to go through a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property. Call (360)312-5151 for a FREE list of short sales today! Why buy a short sale?
When you buy a short sale, you are buying it for the mortgage amount, and sometimes less, instead of the original purchase price. Plus, these homes are often better investments than a foreclosure because the owners still live in them, the yards are being maintained, and quite possibly, the interiors do not need much repair or remodeling. Preparing to buy foreclosures and short sales:
Foreclosure and short sale homes present a profitable investment opportunity for first time homebuyers, investors, and everyone in between. But, there are a couple of disadvantages that could make the transaction more difficult than that of a typical home sale. Make sure you are working with an experienced professional before making any offers so that you are well aware of what you're getting into. A few cons are as follows. | • | Property condition. Many foreclosure and short sale properties are in good condition in beautiful neighborhoods. But some are rundown and reflect the financial difficulties that the previous owners were facing and latter require significant repairs and renovation – which is fine if you want a fixer upper, but it's not something you want to discover after purchase. Be sure to get the home thoroughly inspected before buying. This way, you won't be unpleasantly surprised by a leaky roof or septic tanks after purchase. | | • | Different buying procedure. When buying a home in the foreclosure market, you'll find that you need to do more research and paperwork and exercise more caution than you would in a traditional real estate market, because foreclosed homes are sold as is, without any guarantees. But given the profit-making potential of these homes, the extra paperwork seems a small price to pay. |
Chris Weitzel & Associates – Your Local Foreclosure and Short Sale Experts!
Clearly, understanding the pros and cons of foreclosure and short sale homes will be critical to your ability to make a profit and find the home of your dreams. As a Certified Distressed Property Expert (CDPE), Chris Weitzel and Associates have the experience you need to successfully negotiate with banks and make sure that the final contract is in your best interest. For more information on how we can help or for a FREE list of foreclosure and short sales, contact us today!
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First Time Buyers >The Seller May Pay
The costs of buying a home may be daunting. For example, you may have finally saved enough for a down payment on your first home, with a little left over to buy the furniture you will need. Then you hear about having to pay closing costs you weren't anticipating, and this may seem like a real setback.
One way to cover such a shortage is to make the sellers an offer that calls for them to credit you for some of the closing costs. As a rule, the sellers may pay a maximum of 3 percent of the sales price if the buyer is putting five percent down. If the buyer is making a down payment of 10 percent or more, the seller can contribute up to 6 percent of the sales price to cover the buyer's closing costs. Some items, such as prepaid taxes and the first month's mortgage payment, must be paid by the buyers. Sellers may also contribute to paying the appraisal, points, title insurance, settlement attorney fees, state or local transfer taxes and similar items.
Keep in mind that if the credit is included in the price of the house, the appraiser will have to justify the amount, based on sales prices of similar homes in the neighborhood.
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| Q |
Where is the world's oldest hotel?
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| A |
The Hotel Ryokan in the village of Awazu, Japan dates back to AD 717, when an inn was built near a hot spring reported to have miraculous healing properties. |
 See More Real Estate Trivia > |
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Chris Weitzel & Associates
RE/MAX Whatcom County
1937 Lake Whatcom Blvd
Bellingham, WA 98229
Direct: (360) 312-5151
Toll Free: (888) 733-7518
Email: chrisweitzelandassoc@NUMBER1EXPERT.com
Chris Weitzel & Associates is the #1 Real Estate "Team" in Whatcom County and we have over a combined 65 years of experience. With a top listing agent, two buyer's agents, a marketing specialist and a transaction coordinator - we have all the professionals and tools to handle any real estate transaction.
We hope that you will choose Weitzel & Associates to represent you during your next real estate move in Whatcom County.   
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