The best real estate deals in Temecula, or anywhere.

So, you’re making a move or simply purchasing a home and, like all buyers, you want the best deal. Rightfully so, you want the biggest bang for your buck, so your first step is to surf the internet and start checking out neighborhoods, schools, home prices etc. While researching you notice that home prices have dropped quite a bit in the past 6 months, so this is a perfect time to purchase. But before you make the jump into homeownership lets look at what kind of homes are available and which ones are the best deals:

REO Properties – Also know as bank owned or foreclosed properties. These properties can be a great deal but “Buyer Beware”, these homes are sold “As Is and Without Warranty”. In most cases REO properties are sold below market value, but as a buyer you need to make sure you have money for repairs. Also note that when purchasing REO properties, the bank (Seller) usually shortens the time for the buyer to perform their due diligence, and I’ve yet to see a bank accept an offer contingent upon the buyer selling their property.

Short Sale Properties – Also known as pre-foreclosure properties. Now these are tricky deals and again “Buyer Beware”. What usually happens is an agent will list the property below market value looking for an offer. Once there is an offer a Short Sale Package has to be presented to the bank for approval. This approval can take anywhere from 72 hours to over 30 days. Once there is an approval, then the closing can take an additional 30 days. So if interested in a Short Sale, you must be patient and realize that you may never purchase the property. Everything is dependant upon the banks approval.

Distressed Properties – Also known as Flip Properties. These properties are great for those that have money for repairs, can perform the repairs on their own, or have even more money to pay a contractor to perform the repairs. The advantage of this type of purchase is the below market value price, but please do yourself a favor and get true estimates for repairs. Once you get the estimates, cross-reference the total cost with the current market value of the property once it’s brought up to code and ready to occupy.

New Construction – New homes are always an option and with builders offering buyers incentives and free upgrades, these properties are always worth a look. I would however suggest that you ask exactly what you’re getting for the advertised price. You will find that builders are very similar to new car dealers. You may find that the advertised price is for the stripped down model of what you desire, and the incentives do not always cover as many upgrades as you would like. Also, be sure to ask about recurring expenses like Property Taxes, Special Assessments’, HOA dues, and if there are any hidden per month costs. You will most likely find that new construction will cost you much more in recurring costs compared to pre-existing homes.

Owner Occupied – Also known as a standard sale. Now since our market has changed in the past 6 months, owner occupied homes take up a smaller slice of the selling community pie. Though the asking price may be at the mid to upper price of today’s market, a buyer should look at and compare what the seller is offering. Remember, pre-existing homes will most likely have lower recurring costs such as Tax Rate, Special Assessments’, and HOA.

So, what is the best deal in town? You will have to decide that on your own, but remember that it is dependant upon your wants, your needs, your ability, your timeframe, and you’re investing experience. Please do yourself a favor, compare, compare, and yes compare. Get a true bottom line with not only purchase price, but also monthly expense. I would also ask you to remember that the lowest advertised asking price on any property is not always the “Best Deal in Town”.