As a follow up to last night’s blog regarding the amazing deal on the Disharoon Ridge condo foreclosure I have a few words of advice. Deas Nealy made a great point in his comment last night in reference to carrying costs. My buyer was already familiar with Big Canoe and the fees involved with the condos here. However for those of you that do not know, Big Canoe has a mandatory POA fee of $211 which covers all maintenance including roads, trails, fire department, security, gates, common areas, and the clubhouse. The condos have additional fees that vary depending on the section, but it is important to keep in mind that the fees include insurance, termite bonds, and exterior maintenance. These are items you would pay for anyway in a fee simple home. Before buying any foreclosure make sure you are aware of the fees involved. Even if you pay in cash you will have carrying costs.
The following rules are a bit like ordering from the Soup Nazi because the banks are not very flexible and only want serious buyers:
- All foreclosure sales are sold “as is”, meaning that the bank will not fix anything that may be broken. All the negotiating is done up front and any due diligence period will be minimal. Have an inspector on stand-by during negotiations. Take notes on all repairs. The deal you get on paper may be wonderful but after the closing you may be overwhelmed with repairs. Over estimate the repairs by 15% or even more to be safe.
- All offers must be submitted with a pre-qualification letter from a lender unless you plan to pay in cash. If it’s a foreclosure deal you are looking for then be prepared before you start.
- Earnest money is typically non-refundable.
Big Canoe does not have a whole lot of foreclosures but when a good one pops up, they usually sell pretty quickly. I check for new listings every few days. If a foreclosure appears I try to check it out so I’ll be ready if anyone asks for one. Feel free to send me an email or give me a call and I’ll be happy to discuss it with you.
~Karin Elliott is a resident of the North Georgia mountain Community of Big Canoe. See all Karin’s Big Canoe Real Estate Listings here. Read more about living in Big Canoe in her blog Life in Big Canoe, Real Estate in the Mountains.