With the FHA / Short Sale / Foreclosure frenzy these days, I've found that most buyers are not aware of the expenses that you may incur due to the fact that there are so many bank related properties in the market these days.
First there's the obvious. Inspection and appraisal. Each of them will run you approximately $350 to $450. These are non-reimbursable expenses if you cancel escrow.
Also, you need to realize that it is very common for banks to not pay for expenses that would normally be paid by a seller. For example, termite repairs, condo certifications, Dept of Building & Safety reports, reserve studies, and/or anything else that is lender or escrow required that might normally be paid by the seller in a regular escrow.
With this in mind, it is not wise to think that if you go around town spraying offers all over the place just to see which one sticks, or that you can get into escrow on a bank-related property and just change your mind if something better comes along, you're probably going to end up footing quite a bill.
So choose an experienced Realtor, stay commited to working with them closely and develop a good relationship with them.
Be selective about what you choose to be your next home.
And when making offers, treat it as that - YOUR NEXT HOME. Don't treat it like a stock investment that you'll buy only if it's at a certain price.
