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By Mike Cooper | Broker in Winchester, VA

Fair Market, Foreclosure, Short Sales - What should you buy?

Fair Market, Foreclosure, Short Sales - What should you buy?

Fair Market, Foreclosure, Short Sales - What should you buy?

 

Fair Market Sales

  • Fair market sales are typically the easiest to find, finance and close.Fair Market Sales

  • Not always the easiest to negotiate
  • Can tend to be overpriced, but not always.  Can be negotiated with many sellers
  • Most Realtors are well versed in the fair market process
  • Properties are often not vacant
  • Owner impact on the property will be more obvious
  • Owner may be willing to make repairs
  • Owner may be willing to add closing costs
  •  

    Foreclosure

    • Foreclosure
    properties are easy to find in today's market
  • Financing may be hindered by property condition - may require a renovation loan
  • May be damaged by previous owner - or may need more repairs due to previous owner's inability to keep the property up during their financial struggle
  • Foreclosure
  • companies do not like to do repairs - normally sold "as is" - may do system repairs due to necessity
  • Prices tend to be lower because it's a foreclosureForeclosures
  • More room for price negotiation than short sales
  • Closing is about the same as Fair Market once a contract is ratified
  • REO companies may be willing to add closing costs
  • REO companies want things to move swiftly once the contract is ratified - they don't like contingencies
  • Buyer may be subject to per Diem fees if he/she is responsible for a delayed closing
  • Not all Realtors are familiar with the REO process, but it is easier to learn on the job 

  •  

    Short Sales

    • Short sales
    are easy to find in the current market
  • Listing price may not have been approved by the lender prior to listing
  • Short sales
  • will require more time to secure contract acceptance and ratification - can be as long as 3-6 months, and beyond
  • Just because a seller says yes to a purchase offer doesn't mean that Short Salesthe buyer has a good contract.  The third party may not accept the buyer's offer.  Then again, the third party may counter the offer.
  • The buyer cannot fall in love with the property.  There are numerous things that can go wrong.  Advise the buyer not to fall in love with anything that can't love him/her back.
  • Financing is similar to fair market
  • financing
  • If the buyer has the time, patience and money to buy, it can be a great option.  Many short sales are equal to and/or lower than foreclosure prices.
  • Not a good choice if time is a factor
  • Houses tend to be in better condition
  • The short sale company will almost never do repairs.
  • Short sale companies do not like any contingencies
  • Short sale companies almost never offer closing costs
  • Short sale companies may try to change the rules at the last minute affecting Realtor compensation and seller contributions to the sale
  • Not always vacant
  • Not all Realtors are familiar with the short sale process - this can hinder the entire process
  •  

    All three types of purchase should be considered when looking at homes for any, and all buyers.  The buyer's circumstances may be more of a consideration than the type of home purchased.

     Fair Market, Foreclosure, Short Sales - What should you buy?

    1. Buying your first home in Winchester VA

    2. What to look for when buying a foreclosure in Winchester VA

    3. Short Sale inventory in Winchester VA

    4. Winchester, VA - The best bedroom community for the Washington, D.C. area

    5. Passion is contagious - Infect somebody!

    6. Winchester, Virginia is a great place to buy a house at great discount!

    7. This simple electrical test could save your life.

    8. Turn setbacks into springboards

    9. Reduce your mortgage by pre-paying principle and eliminating interest

    10. What can I do to sell my home more quickly?

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    Give me a call for all your real estate needs, and let's make something amazing happen. 

    Mike Cooper @ Cornerstone Business Group, Inc., 888-722-6029

    Real Estate Sales and Property Management


    (Disclaimer:  All grammatical mistakes, punctuation breakdowns and misspellings are purely for your amusement and entertainment.  Feel free to cackle.)


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