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Did you skip your home inspection to try and win a bid for a home, or go in with a cash offer (bidding over asking price)?

On the weekend, I visited the flooded basement of one of my clients that passed on a home inspection a few months earlier in the desperation to win a bid (despite being warned this was a bad idea). There was no sump pump, the grading was poor, and there clearly had been evidence of a previous water issue in the basement (based on the drywall having been cut up a couple of feet).

A few weeks earlier, I had a client make an offer (that was accepted) without conditions on a home that went for a fair bit over asking price (again against my advice). Only problem was the lender wanted the property appraised. Sadly there were not enough good comparable sales to justify the price he paid (the appraised value was $20K lower). As a result, he had to pay the difference between the selling price and the appraised value as additional down payment (he ended up having to borrow from mom/dad as he didn't have the money).

As a mortgage broker, my job is to help protect you as a potential homeowner so you get into a situation that will allow you to be successful financially. Proper due diligence prior to firming up a deal will ultimately help protect your family from disaster. If you cannot win a bid without protecting yourself, you simply should not buy.

#mortgagebrokers #trentonmortgages #cragnickerson