While buying a home can be one of the most exciting search processes you’ll ever go through, remember there’s a lot more to it that you need to be aware of.

1.  Short sales:  Patience and an ability to expect the unexpected is a must.  A short sale is when a home seller as negotiated with their bank to accept less payoff for their home (for example, they owe $175,000 on the home but can only sell for $160,000).  Homes can fall into foreclosure while you’re in the process leaving you with lost time and no home.  Sellers rarely have funds for repairs.  Oftentimes, no one has negotiated with the bank to approve the “short sale” so it’s all based on hopes.  You CAN get a great deal, but you need to make sure your buyer’s agent knows enough of the process to know the warning signs and guide you correctly.

2.  Foreclosure homes:  Every foreclosure purchase I’ve ever been through has been super easy and closed quickly.  You have to be ready for the unexpected with these homes.  Many have fallen into poor repair.  Some have been looted.  I walked into one the other day where someone had come in and taken out the ENTIRE kitchen…cabinets and all.  You have to be careful of pricing here!!  Just because it’s a foreclosure does NOT mean it it a better deal than a regular market home.

3.  Earnest money:  I often hear, “How much earnest money should I put down in Nashville?”  Earnest money is typically 1% of the home’s purchase price.  While I’ve never lost earnest money for any of my 200+ buyers, one wrong move and you could place your funds in jeopardy.

4.  Inspections:  Getting your inspections done isn’t the problem.  The essential part is navigating through the timelines and making sure you follow your contract.  I’m extra careful when I write my contracts to make sure enough time is there for the three processes of inspection release.  While  your inspection process is a private time between the inspector you chose and you, be aware that you do have deadlines!