Navigating a short sale can be complex and confusing, which is why it’s imperative to have a professional in your corner. If you’re looking for property in the desert cities, be sure to seek a Palm Springs area short sale expert so that you can benefit from their local expertise. They will have information about comparables in the area and can help prepare you for the intricacies of such a transaction.
Here is our part one of our basic roadmap series for preparing yourself to buy a short sale property. Good luck!
1. Identify potential properties. Start by researching pre-foreclosures in the area and letting your Palm Springs area short sale expert know what you’re looking for. You can also search online, peruse courthouse listings and look for legal advertisements.
2. Identify candidates. Once you’ve identified some properties that you’re interested in, try to figure out how much debt exists and what the actual value of the property is. If the debt is high, it could be a good candidate for a short sell. On the flip side, if the owner has a lot of equity, the lender may prefer to foreclose on the property and try to sell it for a price closer to the actual value.
3. Schedule viewings. Find out when the properties are being shown and start looking. Check the property thoroughly and try to gauge its condition as best as possible so that you can get an idea of what repairs and renovations may costs. Be realistic—if there is too much to fix, it might not be a good fit for you.
4. Perform your research. Have your real estate professional find out what the property is truly worth and try to figure out what your potential for profit would be if you resell it later on. Get estimates from local contractors and vendors to determine how much any repairs and renovations you want to make will cost so that you can factor that into your budget as well as your potential profit margin.
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