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Friday, July 27, 2007

Proceed With Caution

There has been much talk in this market about forclosures, short sales and auctions. Many buyers call me and say they want these what they mean is they want a great deal. What most buyers do not know with the lower price tag comes with costs in other places. Because the seller is no longer owning the home the buyer will not receive disclosures meaning information pertaining to the condition of the home. Banks may or may not cover the costs for a termite inspection and repair which means the buyer will need to pay for this in addition they will need to purchase their own home warranty. These are all services normally provided by the seller. When you go to the auction prices are normally brought well below market to generate interest. I have found with some of these auctions the buyer is required is to pay a 5-10% fee on top of the final purchase price of the home. So the buyer is actually covering the normal percentage the seller pays to a real estate agent to sell there home and secure a buyer.
So why do I bring this up?? There is currently 13 months of inventory in San Diego County on the Multiple listing service. With so many homes to choose from find a home where it is still owned by the seller and is reasonable with expectations to selling there home. You can find your "Deal" there!

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