Make an Educated Purchase When Buying Foreclosures in San Diego
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Published: Wednesday, December 31, 2008
As you begin the process of buying a foreclosure in San Diego you will realize that there are plenty of homes available. There are so many options; sometimes it may be hard to choose which is best for you. Be wise, don't make an emotional purchase. What is an emotional purchase? An emotional purchase is a purchase made based on the properties superficial attributes like looks, or zip code. This article was written to inspire thought. It will help you make an educated purchase versus a superficial purchase. Are you saying that I shouldn't buy a home based on the way it looks? To put it simple, yes. There are a number of factors that should be included when determining which home to buy including; location, resale value, and the condition of the home. For the sake of time this article will explore the aforementioned.
Location- In real estate it's all about location, location, and you guessed it, location. When you begin shopping an REO in San Diego, ask yourself:
"How far will my commute be?"
"Is this a community I can see myself living in?"
"How are the school districts?"
"What is the overall condition of the neighborhood"
Falling in love is easy, staying in love is not. Purchasing a home in most cases is a long term commitment. It's not like paying rent. You can't just give a thirty day notice once you realize you no longer want to live in the community. Do research. Talk to the neighbors. You cannot make an informed decision until you have collected enough information.
The next factor to consider is resale value. Personally I find this to be the most important. Let's look at this example. Susan bought a condo in La Mesa in 2005 for $300,000. Sounds ridiculous right? Unfortunately many people made the same mistake Susan made. The condo is beautiful, granite counter tops, a beautiful master suite the whole nine yards. Sadly Susan made her decision to purchase the condo on looks alone. She assumed that condos would continue to earn value. Now Susan owns a beautiful condo in La Mesa that is worth less than the mortgage. What should Susan have done differently? Susan should have taken the time to evaluate the market.
Here is another scenario. James purchases a bank owned home in Carmel Mountain. He gets what he believes to be an incredible price considering the zip code. The previous homeowners were a bit upset about losing their house so they left it in terrible condition. Despite the needed repairs, James still purchases the property. James was so excited about the sales price he waived his right to have the home inspected. At the end of the transaction James realized that the repairs the home needed will be costly. James has to take out a subsequent loan to complete the repairs. The moral of the story? Evaluate the condition of the home.
From this article you can see the ill effects that come from making a purchase based on emotions. Buying foreclosures in San Diego can be very profitable if you do it right. Richard Elias can help you make the best investment for your dollars.
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Make an Educated Purchase When Buying Foreclosures in San Diego
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