lsaldarini, Home Buyer in Sun City Center, FL

Short sale/Forclosure vs. Buying a pre-existing lived in home for sale

Asked by lsaldarini, Sun City Center, FL Sun Sep 14, 2008

I've been out looking to buy a house in the Sarasota Fl. area. At first I asked a realtor to find me a good value priced short sale.We were shown homes that were pretty wrecked. They were with out appliances, dirty and rugs ruined just for starters. Then we started to look up homes for sale that were owner occupied and believe it or not we can get cheaper, better and clean for as much or less than these short sales/forclosures. We see no point in buying a home that has to be completely cleaned and thousands of dollars to be spent fixing and painting. Not even counting the time and effort. What is really the benefit??

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You're on the right track. The other critical point is that when you look at a normal sale, where the homeowner has the final say in negotiating with you, then you can be confident of getting the home for the listing price or lower (especially in this buyers market). In a short sale, the listing price is often just low-ball bait, and your final price - if you ever reach that point, which is doubtful - will be significantly higher. That makes them far less of a value than they appear to most would-be buyers. A short sale can be listed at any price the homeowner chooses - pick a number. That listing price is irrelevant to what you might ultimately have to pay. The homeowner is attempting to sell it at a price that is short of the amount required to pay off their mortgage. Often the homeowner is every bit as naive about the process and results as the would-be buyer. But as a buyer, you should understand that in a short sale, you can never get clear title to the property without the mortgagee's cooperation. They can ignore you, ask for more, whatever they want.
1 vote Thank Flag Link Sun Sep 14, 2008
Isaldarini,

Welcome to the world of "short sales and foreclosures." You have experenced pretty much the common thread of these opportunities. There are however locations where you can find nearly new or new homes in Sarasota/Charlotte Counties. For example: 2006 construction, 3 bedroom, 2 bath, 2 car garage, never lived in, prices under $160,000.

We would be happy to share more about these types of opportunities. Give us a call: 941-408-5363

Good luck,

The "Eckler Team"

Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
0 votes Thank Flag Link Mon Sep 15, 2008
I tell my clients all the time that if you shop wisely for a home, and work with a good realtor, you can flush out great deals in this market on a home that has a warranty and is in excellent condition, unlike many short sales and/or foreclosed properties. All too frequently, the inhabitant feels like they have lost everything anyway, and, in anger, trash the place prior to their departure. Not always, but frequently. You can make an offer to your liking on any property to your liking--the worst that can happen is a seller says no or doesn't respond if they are insulted. Work with a realtor, and just look for a good buy--whether it is short sale, foreclosure, or standard listed home. Happy hunting!!
Web Reference: http://www.MykeTriebold.com
0 votes Thank Flag Link Sun Sep 14, 2008
I couldn't agree more with my collegues..........
People has developed some kind of mind status, Short-sale, foreclosure, like seller are giving away free candy.
Generally speaking, those are distress situations, and best suited for investors with a vision, so don't be surprise finding some messy houses.
Also you're forgetting the cream of crop, R.E.O or bank owned, which can be a real bargain, but still you might have to throw some sweat equity in it.

check my site for UP to date foreclosure and fixxer-upper......... use as many filter you like.
good luck.
0 votes Thank Flag Link Sun Sep 14, 2008
We agree that you should look at homes that meet your criteria whether they are short sales or being sold by owners who are very motivated to sell. The point is to find the best home for the price you want to spend.

By the way, not all short sales are a mess. Many of them are still owner occupied in fact. Some of them are very well priced. The problem is that the bank has to approve the sale price. The bank will not make any repairs, and the bank may not respond to your offer for 60 to 90 days or more.

Best of luck in finding the home you really want at a price you can afford to pay!
0 votes Thank Flag Link Sun Sep 14, 2008
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