We’re pleased to announce that our new e-book California Real Estate: How To Pay Significantly Less Than Your Neighbors & Avoid Costly Mistakes is now available for download!
We gave out a few copies over the weekend and have already gotten some positive feedback. Please let us know your thoughts.
You can purchase
Your offer has been accepted and the goal is now to get escrow opened and closed. This is not as simple as it seems. Many real estate transactions get to this point but never end up closing. When you talk about a real estate transaction “closing” that means the new owner has been recorded on title and has taken possession of the home. The transaction is not finished until it closes.
If you are entering into negotiations on real estate you need to understand how counter offers work. Not understanding could prove to be a costly mistake. A counter offer is an offer by one party that has anything different from the terms of the original offer. A counter offer is a rejection of an offer. Therefore, making even one seemingly insignificant change to an offer, rejects that offer.
Now that you’ve found a home, or several homes that fit your investment criteria, it’s time to make an offer. Making an offer is not as straightforward as you would think. An offer contains several different terms, all of which affect your overall offer. An offer is more than just price.
Before you begin making offers on homes, make sure you understand all the expenses associated with buying and owning a home. Whether you are a first time home buyer or you’ve owned a home for many years, understanding the expenses associated with homeownership is critical. As we said previously, knowing is half the battle, at least you can plan for it.
You’ve come a long way in the home buying process and have hopefully learned many of the skills necessary to pay significantly less than your neighbors and avoid costly mistakes. The real estate buying process may seem complicated because honestly, it is! Remember though, you’ve built your team and are not alone. Be sure to capitalize on the resources available to you.
REO stands for Real Estate Owned. This means it is real estate owned by a bank or lender. REO is essentially the last step in the foreclosure process.
In California, trust deeds are used as opposed to mortgages. When a borrower falls behind on their payments to the lender, the lender starts the foreclosure process. After proper notice and time, an appointed trustee holds an auction to sell the home, the proceeds of which will be used to pay the lender back. If the property does not sell at the trustee’s sale, the lender takes ownership and the property becomes Real Estate Owned by the lender, or REO.
A Short Sale or Short Pay is a type of real estate sale. It is not a foreclosure nor is it an REO. When a homeowner (borrower) is behind on their mortgage, sometimes the lender will allow the buyer to do a short sale. When you buy a short sale, you are buying it from the borrower, not the bank. However, the big catch is that you buy it SUBJECT TO THE BANK’S APPROVAL.
Buying a home to rent means a different set of investment criteria than searching for a home to live in. If you will be looking for a place to live yourself, there is personal value attached to aspects of the home. Your happiness is an important factor, which can come at a price. When buying a rental property, however, it all comes down to dollar and cents. You will not be living there so you need to primarily consider your return on investment.
How to find the home of your dreams, pay less than your neighbors, and avoid costly mistakes.