The Malaysian real estate gurus of the land can tell you a million reasons why you should not buy a foreclosure home. It can be problematic, they are likely to be unmaintained, you may end up making more expenses on repairs than you save on the selling price unlike buying from Horizon Residences, etc, etc, etc.
Foreclosed homes can be a housing value to a person who is seeking an upgrade to an existing property or buying a home for the first time. -from PRWeb.com.
But I tell you and I kid you not, there are just as many reasons why a Malaysian foreclosure home may be the best fit for you. You can get a foreclosure home mostly from many home auctions; you can also get them in the traditional way of home purchase via listings and ads.
The thing about foreclosure homes and buying them is that it is risky; but if you do it right and you know your way around the market, you’d more or less get your dream home in practically half the price – plus get the chance to revamp the entire house to suit the way you like it.
Apart from that, here are 5 other very good reasons why buying a foreclosure home is a great idea for any home buyer:
- They are usually cheaper. You can get a good location house for about the price of a good non-foreclosure house in a bad location. Foreclosure homes, due to the fact that they have mostly been abandoned and they are not move-in ready, on top of the fact that the mortgage lending company/bank is trying to get rid of it to get back on the investment, are sold much, much more cheaply than regular homes. So if you’re looking to buy with a very limited budget, you might want to check out the homes listed on foreclosure sale.
- Transactions are likely to be faster and easier. With only the representative of the bank or mortgage company to deal with, you won’t have to worry about fickle, emotional home owners who cannot easily part with the house. All they care about is getting rid of the property as soon as they possibly can so if you can comply with practically everything they need, you are likely to get it.
- This is a perfect place to get homes to flip. If you’re looking to get into the home flipping business, you might want to look from homes listed on foreclosure. You are assured of definitely cheaper homes to work on for flipping and so your profit is almost always certain.
- The papers are likely to be intact and less likely to have problems. The house has gone through the worst part and you won’t have to worry anymore about having to assume someone else’s mortgage loan which could be problematic. The property is practically already in the hands of the mortgage lender so everything should be intact and non-erratic as far as papers are concerned.
- You’re bound to earn a profit more easily when you decide to sell it in the future. Because you bought it at a relatively low price, and assuming that the expenses on maintenance weren’t that costly either, you’re likely to get your money back and more when you sell it in the future.
So you’ve found your new Malaysian house, the house where you will build your dreams and raise your children and grandchildren. This is all you’ve been yearning for, and it has come to this; all the running around and looking at homes and meeting different agents and home owners, finally it has come to this: your Kiaramas Ayuria dream house.
But before you get so lost in the moment, before you prepare to move your entire household into your new abode, there is yet one more thing that you have to accomplish: make an offer and make everything right, not to mention, legal.
Do’s and Don’ts… What Follows Next!
This is one of the most difficult and most taxing parts of home buying, and can be a nightmare for first time home buyers. So to make things a teeny bit easier for you, here are the basics of making an offer, do’s and don’ts and other tips to make this a smooth sailing process:
- Make sure you and the Malaysian real estate agent (or the owner, in case of a FSBO sale) have agreed on the final selling price. Remember, the digits you indicate on your written offer will be the amount that you will have to pay for. So make sure your offer and your negotiated price are the same.
- Make known the contingencies aka conditions of the sale. It is simply stating that the sale will be made final and an actual payment will be made only if the mentioned conditions/contingencies are met. This usually covers repairs, inspections, and financing on the part of the home owner, among others are the most common contingencies in home offers.
- Your buyer’s offer should also contain other information about the sale – when you’re planning to make the initial and/or final payment (date), how it is going to be paid, and how much the down payment is going to be.
- Don’t go about making an offer without the aid of a legal counselor. This offer is as good as a contract, especially because it is made in writing and is signed by both the buyer and the seller. To make sure that everything is legal, correct, and fair for both parties, it is best to get it done at an attorney’s office.
- Make sure that the offer also indicates important legal information about the Malaysian house and the deal; this should include the seller agreeing to clear the title, a detailed and accurate environmental and location information about the house including hazards and land use regulations, as well as the type of deed given.
- Prior to making an offer, make sure you have sat down with the home owner (or their representatives) as to what each party demands of each other. This will make sure that the offer will only be made once and be agreeable to both parties. This saves you both a lot of time and a lot of effort.
Don’t be too hasty in making an offer; it is binding and legal for as long as it says so. Take your time and make the right decisions!
Wise Words From The One In The Trenches! Long Live Bonaire!