Foreclosure in Delray Beach>Question Details

Amy Keown, Real Estate Pro in Boca Raton, FL

Why does everyone want a short sale or foreclosure when there are NICE houses priced the same on the market?

Asked by Amy Keown, Boca Raton, FL Sat May 24, 2008

that don't require all the games and waiting to hear from the bank?

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I agree with Bill - it's the media. That's where we come in - educating the buyer. Funny how they'll believe an irrsponsible journalist over an industry professional.
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2 votes Thank Flag Link Sat May 24, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
For the average buyer especially a FTHB, I would stay away. But for some others as well as investors, this is still a great avenue to explore.

These banks dont want to deal with more foreclosures and I am seeing properties go for nice deals.

Think its media that is telling people that they should look into them. Then when people see that these foreclosures need work they wonder why. I always tell them this "if someone cant pay their mortgage, dont you think they will stop renovating and keeping up the property before the final straw of just not paying the mortagage?"

Sean Dawes
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1 vote Thank Flag Link Fri Dec 4, 2009
i agree... stay away from the short sales unless you have lots of time and patience which most dont have. there ar some great deals in foreclosures if you want to or are capable of or have the money to pay for the work they need. there is alot of great houses, already fixed up that the sellers can sell lower because they didnt refinance all of their equity out in the last 4 years. good point Amy
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1 vote Thank Flag Link Tue Oct 28, 2008

I believe that people generally believe that these properties are a steal because lenders price them below market to generate interest, When people find out they could hang for over 60 days for an answer and find out is not the answer they were waiting for that educates them.

I recently had a client that lost out on a 90% LTV Stated Program that got discontinued while they waited for this lender to give them an answer the answer never came.
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1 vote Thank Flag Link Sat Jun 7, 2008
It all about media hype.....People have during the past 2 years heard "short sale & foreclosure" over and over until they believe they're the best thing going.
The real truth about the "best values" opportunities needs to be passed along so that buyers are truly able to explore all of their options.

The "Eckler Team"
1 vote Thank Flag Link Sat May 24, 2008
Because the think they're going to steal it.
1 vote Thank Flag Link Sat May 24, 2008
On Bank owned properties there are no waiting time . Again Florida and PA are two different markets
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0 votes Thank Flag Link Sat Dec 5, 2009
Well, that was a year ago. I think that buyers have become weary of waiting for the answer from the bank and are now buying NON short sales. Considering the wait, on top of all the necessary repairs...they have come to realize that a NON short sale is the best way to go...unless they have the patience of a saint! When you add the cost of the repairs to the deal, you are still spending the same or more than a NON short sale in most cases...and a lot less aggravation.
0 votes Thank Flag Link Sat Dec 5, 2009
Compared to last year yes it may be differenent in PA Good for you
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0 votes Thank Flag Link Sat Dec 5, 2009
In response to below. So you were not selling "normal" sales before?

I think homeowners just have not realized they have to price it lower than they wanted. That is the only reason why your non short sales arent selling. A home could be worth $400,000 and the seller still thinks its worth $435,000. They dont understand that a) its not worth that and b) what will happen come appraisal time even if you got a $435,000 offer. No mortgage = no sale.

It takes times for the market to come back and it takes time for people to get beyond the mentality they had when the market was hot.

Sean Dawes
0 votes Thank Flag Link Sat Dec 5, 2009
In Florida I have started to sell homes that are Normal sales
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0 votes Thank Flag Link Sat Dec 5, 2009
Maybe because the nice houses priced the same are not comparable in other ways?

Maybe to many normal sales start to high so buyers give up and forget they exist as they are always to high?

Remember, a lot of buyers now are those who wanted to (and ended up waiting) buy before. They have been trained by YOU, the realtors. You taught them that "normal sale" houses are to expensive. Since they know this they do not bother to look at them anymore. It is a learned behavior from past pricing blunders that are impacting present buying patterns.

I learned 20 years ago never to trust taiwan or china made tools. I broke to many of them. Now, even if they say snap-on I would not trust them. I learned the lesson well.

Many house buyers today may have learned a similar lesson over the past few years. You told them houses were out of their price range. They believed you and think only a foreclosure will be affordable now.

Can you educate them differently? Maybe you could get NAR to come up with a campaign other than buy now, interest rates are low and prices are going up. (sighs) good luck on that effort.
0 votes Thank Flag Link Sat Dec 5, 2009
In Florida there are steals in foreclosures and short sales now the gap is closing between those and the regular sellers who did not pull out equity in their homes
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0 votes Thank Flag Link Fri Dec 4, 2009
I agree with you Jess, short sales are a long time closing and buyers get frustrated if you have someone who doesn't know how to close them. So many of them are priced but not accepted by the banka nd you have to start all over. At least when you find a good priced home that is not a SS it is ususally still negotiable, taken care of and if the seller purchased a while ago they are happy to make a profit and still give the buyer a great deal. They realize by now it is a buyer's mkt and price it accordingly. Especially ifyou find an Estate sale or RELO, there are plenty of deals out there, that is why they call it a buyer's mkt no a wait and see mkt/, if you are planning on buying do it now and don't miss the bottom,nobody can predict when that is.
0 votes Thank Flag Link Tue Oct 28, 2008
The simple answer, from a buyers perpective, is that they are simply unavoidable.

In my market, all of the most competitivly priced homes were short sales or REOs. It was that simple. Owner Occupieds simply had not realized that "this is what homes are going for now". We literally couldn't get away from them. Of those that were not labeled 'bank owned' or such in the MLS, if it was priced attractively it invariably turned out to be a REO.

There were so many nicely priced, move in ready REOs that we didn't even really need to deal with the long drawn-out short sale process. So we really didn't look at them.

Shopping REOs in SoCal isn't any different then shopping owner occupieds, as most are not trashed and are in fact only paint and flooring away from 'move in'. Offering/buying them, of course is very different.
0 votes Thank Flag Link Sat Jun 7, 2008
Hi Amy, I would not generalize that "EVERYONE" prefers short sale of foreclosures. Also, the "waiting game" is related to the "SHORT SALES" sometimes listed also as "FORECLOSURES", HOWEVER, the "BANK OWNED" properties, true foreclosed properties, usually get a much faster response.

In the past, those were considered rare, in the current market, they are all around, and the buyers are looking for the "best deal" with the "better condition" and vice-verse. Buyer's market=pickier buyers.

But you are right, there are some buyers that assume that they will get a better deal if it is a "short sale"/foreclosure property and that is not necessarily right. It might happen more frequently when the current or previous owners had bought the subject property under a HIGH SELLER'S MARKET, but when the seller or current owner has being on the property long enough to build strong equity they are able to list their properties in a very competitive price even in this LOW BUYER'S MARKET.

Great Question to educate buyers. Thanks for sharing!
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0 votes Thank Flag Link Sun May 25, 2008
I do not believe "everyone" wants a short sale or foreclosure. Why?

In Chinese Feng Suei, those properties must have some problem, so that the owner who eventually got their energy level "drained" by the property before their life screwup and give up the home.

So, when one buy a house, one should ask where is the owner going to do? Is current moving up to buy bigger home because got promoted making more money? or Is the owner make great money on oil stock and building a new mension? Chances, if you buy houses like that, you will repeat the luck. Other wise, you will have the same badluck.

My friend has a property that every of his tenant, once moved in, lost job within 6 months, and it has been always like that for past 20 years. So, if you are investor, may be go ahead to buy badluck properties.

Ideally, builders or flippers should buy them, and renovated, say to adjust the Feng Suei of such badluck properties before resell in the market ...
0 votes Thank Flag Link Sat May 24, 2008
Actually a lot of buyers don't want to mess with all that. You should see the number of MLS listings that have "not a short sale! Immediate occupancy!".

However, buyers asking for foreclosures, short sales, and handyman specials may not know that much about the issues involved, or the availability of suitable, immaculate, and ready to occupy homes. So we need to have that discussion when they ask that question.

Everyone loves a great deal, but when everyone else is looking, anything that's still sitting around can't be that good a deal, can it? You won't find "door buster" deals at the mall at 5pm.
0 votes Thank Flag Link Sat May 24, 2008
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