Home Buying in Temecula>Question Details

temecman, Other/Just Looking in Temecula, CA

how come the agent says it is a "standard sale" but the house was foreclosed on a month ago?

Asked by temecman, Temecula, CA Mon Feb 13, 2012

I thought standard meant the owner was selling it for a profit

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Well answered below - probably an investor flip. If you need more info, feel free to contact me.
1 vote Thank Flag Link Mon Feb 13, 2012
This is a good question. More than likely the home was bought at the court house auction for cash by an investor and they are now marketing the home for sale. This is also know as a Flip Property. It can be sold as a "Standard Sale" because it's not a bank owned home/REO or short sale.

Most of the time these investors put money into the home and sell them as a turn-key home. Many buyers like the fact that they do not have to deal with a short sale and have a great property to call home.

I hope this answers your questions. Feel free to contact me to discuss this further or if you have any additional questions.
1 vote Thank Flag Link Mon Feb 13, 2012
The current owner most likely bought it as an investment at a below market value price and usually has done some improvements to the house to make it sale for the new fair market value price.
1 vote Thank Flag Link Mon Feb 13, 2012
"Standard" doesn't mean anything. It certainly doesn't mean just that the owner is selling for a profit.

A "conventional" sale generally means that a seller is selling to a buyer. Perhaps the seller is making a profit. Perhaps the seller is breaking even. Perhaps the seller is losing money, but bringing money to closing.

You can contrast a "conventional" sale to a short sale or a foreclosure. In a short sale, the seller is selling to the buyer for less than what is owed on the property AND the seller is requesting the lender's approval for the difference. In a foreclosure, the seller is the bank or lender, not an individual owner.

If the property was foreclosed on a month ago, either: (1) the bank owns the property and is selling it, or (2) an investor or someone else bought the property from the bank and is now reselling it.

If it's the former--the bank is selling the property--then it's not what I'd call a "conventional" sale. It's a foreclosure or REO.

If it's the latter--someone bought the property from the bank and is now reselling it--then, yes, it would be a conventional sale. You'd be buying the property from an individual (or an LLC or some other entity).

Your agent (use your agent, not the listing agent) can clarify the situation for you.

Hope that helps.
1 vote Thank Flag Link Mon Feb 13, 2012
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
In real estate lingo "standard" just means that the Seller has the authority to sell the house without getting a 3rd party approval (short sale) or jumping through a bank's hoops (REO or Bank Owned).

If it was foreclosed on a month ago, there is a new owner that can sell it now.

Profit has nothing to do with any of the sale types.
0 votes Thank Flag Link Mon Feb 13, 2012
Temecman,

Usually a Foreclosure is BANK OWNED. and a Standard sale is not owned by a bank.
So it is possible, that while a property could have been foreclosed upon, an independent owner as opposed to a bank owns it. There are some other things such as marketing etc.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@temeculacaliforniahomes.net
http://www.temeculacaliforniahomes.net
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Mon Feb 13, 2012
Great question and good answers! One thing to keep in mind is that even though it may have been purchased for cash at auction and is now for resale for whatever reason, they may have reconditioned the home and it is hopefully in much better condition than before. If it is ready for move in and you love the property, then this is a great buy and can be purchased through a much quicker, less waiting and a smoother sales process making the "Standard Sale" sometimes less stressful, than lets say a banked owned or short sale, which can possibly be a long drawn out process. So do not be discouraged to think you may not be getting as good a deal, when there are many variables and things to keep in mind through the buying process that makes a home perfect for someone and a good value. Best wishes on your home search! If I can help let me know? Thank You! rfarnsworth@gmail.com
0 votes Thank Flag Link Mon Feb 13, 2012
I think they got you covered with the answers below, if you have an address I can look it up and give you more details?

Thanks
0 votes Thank Flag Link Mon Feb 13, 2012
This is most likely an investor owned property ... like a "flip"

There are restricting lending rules that apply....contact me if you want more info
0 votes Thank Flag Link Mon Feb 13, 2012
Must likely it is a flip house. An invester bought it, fixed it up and now selling it. A standard sell.
0 votes Thank Flag Link Mon Feb 13, 2012
Hi Temecman,

A standard sale does mean the owner has equity in the property and/or will be selling the property with enough proceeds to pay off all liens on the property.

If the property was foreclosed/sold at auction, someone may have purchased it and is now selling it for more than they purchased it for - therefore, making it a standard sale.

Or, maybe the Realtor listed it incorrectly?

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Feb 13, 2012
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