Use Your Lender's Appraisal Strategically
Buying a distressed home is not all problems and headaches. You do have some leverage as a buyer in negotiating a price with the lender. That's especially true if the distressed home is in poor condition. If the bank refuses to make any concessions in price for a home in bad need of repair, ask your lender to conduct their full appraisal of the property. (An appraisal is a detailed valuation of the home that lenders use to determine the amount they will loan you). If the appraisal comes in below the asking price, you can use that to try persuading the bank to accept a lower offer [source: Gibbs].
More Great Links
- AOL Real Estate. "How to Buy Bank Owned Property." Aug. 4, 2008. (April 30, 2011)http://realestate.aol.com/blog/2008/08/04/how-to-buy-bank-owned-property
- Fulmer, Melinda. "Buying a Foreclosure? Plot Your Strategy." MSN Real Estate. (May 31, 2011)http://realestate.msn.com/article.aspx?cp-documentid=20508059
- Gengler, Amanda. "Making the Right Moves." Money. Vol. 39, No. 3. Page 81. April 2010.
- Gibbs, Lisa. "Why to Buy Trouble." Money. Vol. 40, No. 3. Page 78. April 2011.
- McCrea, Bridget. "This Old House?" Black Enterprise. Vol. 40, No. 3. Page 21. Oct. 2009.
- McQueen, M.P. "Are Distressed Homes Worth It." The Wall Street Journal. Oct. 1, 2009. (April 31, 2011)http://online.wsj.com/article/SB10001424052970203803904574430860271702396.html
- Perkins, Broderick. "Is Your Agent Experienced in Distressed Properties?" Realty Times. Nov. 5, 2009. (March 31, 2011)http://realtytimes.com/rtpages/20091105_agent.htm
- RE/MAX. "Buying Distressed Properties." (April 30, 2011)http://www.remax.com/learningcenter/realestate101/realestatedistressed.aspx
- The Wall Street Journal. "How Not to Buy a Home: Learning from a Rookie's Mistakes." (March 31, 2011)http://realestate.msn.com/article.aspx?cp-documentid=21301877>1=35000
If you own a home, you most likely have homeowners insurance, but how sure are you about what is and isn't covered? HowStuffWorks takes a look.