There are certain pitfalls to be aware of when it comes to finding a reliable real estate buyer for the house. It is an opportunity for you to make a good deal. Here are some tips that will help you understand what you should and shouldn’t do.
Do not rush to sign on the dotted line at the foreclosure auctions. The buyers will arrive, the buyer’s agent will be there, and you will either end up being the first to get a contract or getting outbid. And the prospect of having that home go to a developer is much better than having it go to a scam.
Buyers are often looking for the lowest price possible. This is great for them but not necessarily great for you. As the bank will eventually auction the house, and you can only negotiate if the buyer agrees to this.
Never go to the bank and make a loan agreement with them, especially if they offer you a loan. The bank will negotiate on your behalf and provide you lower interest rates and terms. The lender wants their money back, and if you agree to take out a second mortgage, the bank will be in control.
Banks rarely give cash buyers for the house. The banks do it because the costs involved are a little higher. When you get to the closing table, they are going to want a massive fee from you.
Never, ever try to find some self-employed people to become real estate buyers for the house. These people are not smart. If they are smart, they’ll take the job from you’ll end up with a bad deal.
Always listen to the first offer that comes to you. The bank will have people lined up to make an offer. They may have you compete against them and offer them the highest price possible. That is fine if you can get them to pay a lot less, but if you cannot, you will end up with a deal you don’t like.
Do not sign with a reputable real estate broker. They are not your friends. They will push you for the best price they can get, and that price might be to their benefit, but you are getting a bad deal.
Before you give a no money down cash buyers for the house, make sure you set aside a deposit. Most times, when you ask a bank for a line of credit, they will require a deposit to protect their interests. So be sure to set aside money to cover the risk of taking out a second mortgage.
Another word of caution: if you do get a lot of offers from real estate buyers, get to the negotiating table as fast as you can. You will be able to negotiate down the prices as high as you can. The banks want you to pay top dollar for the house, so it is in their best interest to have you stay there.
Make sure you are doing your homework before you start negotiating with real estate buyers for the house. It will only be up to you to find the best deal for you.