Consider the following scenario, which is repeating itself in several over-built cities in the U.S.: The year is 2005, and all your friends are making money in the real estate market. You get in the early pre-construction phase of a condo in a city where real estate is booming. You only put down 10% and can simply wait for 2 years while your condo gets built, and meanwhile the market continues its rapid rise. You close on your property with a sweet 5% down mortgage, and plan to resell soon after.
Only the market didn’t continue to rapidly rise. In fact, it fell 10%, or more, and even the gain you thought you locked in disappeared after factoring in real estate fees to sell the property. Read the rest of this entry »
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August 4th, 2007 | Posted in Foreclosures, Buying Basics | No Comments
Some people like to home or condo-shop for fun on a Saturday. Stop by the sales office. Tour the models. Maybe act a little interested to get the salesperson talking. Real estate agents that work in a sales office know that a certain percentage of their walk-in traffic are weekend-lookers. However, if you’re doing more than just window shopping for condos, there is a good reason not to follow your impulses and walk into a sales office with those weekend-lookers.
That nice sales agent that works at a new development represents the builder, not the home buyer. Once you enter a sales office without a real estate agent by your side, the sales office will not compensate a real estate agent to represent your best interests if you pursue a purchase at the development. Read the rest of this entry »
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August 4th, 2007 | Posted in Buyers Agent, New Condo Developments, Buying Basics | No Comments
