In short sales, the game is to bet high enough to get the bank to take the offer, rather than just foreclosing on the home. Don't bother with back-up offers, look at the active properties.
On foreclosures, there will be multiple offers. If you want to submit a low-ball, don't be surprised when the bank fails to take it.
And make sure that your agent runs the comps for every property, and don't overlook the active sales. I actually found one online auction where the foreclosure sold for more than one of the other units for sale!
Give me a call if you want to discuss a specific search.
If you want to discuss this topic more, I'll be glad to go over some of my past results dealing with short sales. Click on my picture to get my contact information.
If you are comfortable with "gambling" as Ann put it, I'm here to help.
Short sales take a long time, and there is no warranty that it would get approved by the lender. Or, sellers could change their mind about selling (if they were able to find a job or work out a loan mod with their bank). Or, the house would appraise higher then the buyer's offer (by a lot). Or, the seller would not qualify for a "hardship" situation - in the eyes of the bank. Or, the bank would be unwilling to accept any offer - some banks prefer foreclosures to short sales...
Foreclosures are a bidding war. Sometimes, the buyer is lucky - and the bank takes an offer lower than the asking price. More often now, we see buyers paying near or over asking - to leave the competition behind...
Both types of properties often require a lot of money on repairs after the purchase, so the buyer needs to remember it. Home insurance could be higher, if the roof is old and windows are not covered with shatters or are high impact windows.
So, foreclosures and short sales can be great - if you are willing to be very patient and accept the hassle they often come with.
Hope this helps,
Beachfront Realty, Inc.
However, in recent months banks are getting a lot better, now it takes at least 60-90 days at the most or even sooner.
We have a great team and if your interested in short-sales and/or foreclosures please let me know!
Real Estate Associate-Macken Realty
Phone: (305) 527-4922
Any agent will be happy and willing and able to help you..............if you are wiling to make a non-refundable retainer that can be credited to you at closing. Agents KNOW a amature buyer will be on the losing side of a short sale 70% of the time. That doesn't seem like a good proposition when one realizes all that is involved.
As Ann indicated, a buyer indicating they are looking to purchase a short sale and includes the phrase 'really specializes' suggests there is a real disconnect from reality. Of course there are better ways to purchase a short sale than looking for one on the MLS or Trulia or Zillow.
Most agents who 'really specialize' in short sales have an internal group of buyers who have demonstrated they will not waste the agents time, resources and efforts. These are the 'really specialized' agents who really don't need or want to educate a newbie regarding the compliexities of a short sale transaction AND who will most likely second guess the agent by soliciting opinions from strangers on the internet.
Agents are actually looking for specialized buyers who understand short sales and willing to make a committment. Most end user buyers will abandon the process way, way too early. But they ALL say they are serious. The meager inventory tends to throw buyers into this environment. Agents understand the situaion and KNOW this buyer, most buyers do not have what is required. They do not have the flexibility, the focus, the patience, the resources, the experience and the vision to see a short sale through to the end.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
You are searching for distressed property at a very awkward time because most of the bargains were sold in 09-10 to cash buyers/investors. Now, it is a very different market. Even when you do find an REO that is worthwhile, the seller has become well educated. They fix up the properties before selling, list higher and the end result for buyers/investors is a waste of time. At the end of last year, my investment clients began buying new construction! That was completely unheard of in 09-10 because there were so many distressed bargains coming on the market. Now, you will be hard pressed to find a distressed property that actually compared favorably to other investment options.
It's possible the agents you have talked to are just well aware of the realities of the current market. There is no inventive to sell you a regular resale vs a distressed property. The commission rates are usually the same. Maybe they just want to save time and avoid hassles for you and themselves?
If you have an uneducated agent showing you short sales it will not go well. Short sales take time and dedication. That being said, I wouldn't assume that these agents would avoid short sales. In fact, an uneducated agent would probably drive around for days putting multiple offers on short sales without a clue as to the actual closing process. So, the more likely scenario is that the agents you have spoken to are well versed in the distressed market but realize the reality of getting the most for your investment $ requires you to broaden your search to include all types of sales.
I'm not taking sides or trying to be harsh, just an honest opinion. Often times since last year, investors inquire of distressed property deals believing they can still get the same cash flow and rate of return as investors from 09-10. It is a different world now, there are still plenty of great investments, some distressed, some not. But, the idea that an REO is a superior investment is just not true. In 09-10 if you bought anything other than an REO, I would have called you crazy. Now, it's a different investment environment.
Hope that helps by giving you perspective from a broker that specializes in investment property. You will be able to find a great deal, but you must broaden your horizons and find an agent that you trust as being dedicated and educated in the current market.
Best of luck to you and your search,
If I can be of more help to you please click on my profile picture or follow the link below to my site.
Galleon Real Estate
Short sales are a hurry up and wait and having an agent that stays on top of the bank or the sellers agent to bug the bank is key.
Foreclosures are like any other sale, the bank is likely the seller and wants it sold ASAP.
Some Fannie Mae owned properties are needing an agent that logs into the site and uploads offers and then follows up with paperwork.
Puck an agent your gut tells you is the one and you will be fine.
If you need to see short sales or foreclosures for sale, I have them on my site http://www.kevincloutier.com by city in my area.
This can be hell on the Agent and usually ends up in cancellation.
A good Agent will do what you wish;
Just be sure of what you want to wish for.
You can also search on Trulia. Go up to the top where it says "Find a Pro" and enter your location and keywords. For example, I just searched Miami Beach, FL and found Marc Middleton who lists Short Sales and REOs as his specialities. He has 15 recommendations, which is good.
Here is the link:
I don't know Marc, so I can't personally recommend him, but I just wanted to show you that there are ways to find agents who specialize in what you are looking for.