Market Conditions in 34287>Question Details

Karen, Home Buyer in 34287

do you get a better deal with short sale or forclosure?

Asked by Karen, 34287 Thu Sep 16, 2010

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9
gabriel palotas’ answer
Karen,
The conclusion to both is the same. When you have third party approval and your offer is accepted you are celebrating your new home. In most cases a foreclosure gives you more control and easier acceptance if you have no competition in the bidding. The short sale is a bit more time consuming and frustrating especially when your offer is passed over for an other.

My mother used to say shopping is like waiting for a bus, if you missed one there surely will come an other.
Regards and Good Luck
Gabe
0 votes Thank Flag Link Thu Feb 17, 2011
Karen,
In 5 years, you'll be happier with your choice if you focus on the house, the neighborhood and amenities than who you purchased the home from. Short sales can take 6-9 months or even more. During that period other homes will enter the market and be purchased by other buyers.
Getting a good deal is important, but getting a house you love is more important. If you fall in love with a short sale, and are willing to commit the time, frustration and uncertainty while you wait for a banks response, get what you love. If the home is Bank owned, investor owned or private party owned have the best available agent negotiate the best deal possible and enjoy your home.
If you are strictly looking at investment property for use as a rental or flipping, pay more attention to location and overall desirability for tenants or resale. Auctions would be your best bet, but only if you are able to pay cash and know the market. Best of luck with your purchase.
2 votes Thank Flag Link Thu Sep 16, 2010
It is not about the method of sale.
It is about the neighborhood, the block, the street, the lot, and the property itself.
What does your Realtor say?

No offense meant, but it sounds to me as though you need to have a more in-depth conversation with your Realtor or their broker.

Read the link below, take it to your Realtor, have them explain it.
0 votes Thank Flag Link Fri Sep 17, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
It all depends. If it's not a multiple bid situation, then you might be able to underbid on a foreclosure and get an even better deal. With a short sale, it all depends on whether the negotiator is reasonable or not. On one short sale I was doing, the negotiator wouldn't accept anything below 180K, so the home went into foreclosure and it was sold at the auction for 117K. Othertime you get a good negotiator,w ho is willing to work with you.
All n all, I think foreclosure is your safest bet, since bank price the houses slitghly better than short sale departments do.

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
eo@oceanhomesrealty.com
Latest Post: Naples Luxury Home on Fire
http://www.andrewollick.com/realestateblog
0 votes Thank Flag Link Fri Sep 17, 2010
Karen,
You get a better deal in FLORIDA...PERIOD

It does not matter whether you are looking at a regular sale, a foreclosure or a short sale...everything is on sale.

Why is this true? Properties have to appraise. Appraisals are based on like properties that are nearby and their features. That's it...not what kind of sale they are.... ONLY.... what their features are.

So...Florida Real Estate in On Sale and they are going fast!

Debbie Albert, PA
Coldwell Banker Residential
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Fri Sep 17, 2010
Karen,
I have come across a bill board that answers your question directly. Allow me to share it with you and see if you agree.

"Why buy WHOLESALE in Real Estate when you can buy cheaper and safer with RE SALES ?"

Just thought that it is a clever sign unfortunately I cannot take credit for it but I do agree with it. If anyone knows who is the sponsor of this billboard I would like to congratulate them.
Karen,
There are so many good deals out there that one cannot pin point the direction. It seems that in all matters keeping it simple is the answer. Unfortunately short sales and foreclosures are not simple and in many cases disappointing. Seek a true professional in your area and give them your specific need and price range.You will be surprised how many good deals are waiting without the complication of either of your quests when you stick with re-sales.
0 votes Thank Flag Link Fri Sep 17, 2010
Both types of properties, short sale and foreclosure, are typically sold at below market value. Therefore, either one is usually a deal. The difference is that short sales can take anywhere from 30 days to 6 months to close. Foreclosures (bank owned homes) generally take 45 days to close. In either situation you need to have proof of funds to submit with the offer.

The main factors to consider are how much time you have and how much you like the home.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL
0 votes Thank Flag Link Fri Sep 17, 2010
I agree with answers below. Short sales are getting a little easier and are often times very much worth the wait. Again it is a house by house assessment concerning the bank you will be dealing with and the seller's true financial hardship. You would have to have an agent who knows how to work them. It definately is more about the home rather than the seller. Many sellers of regular homes are having to compete with the short sale and foreclosures in many areas and are priced just above these properties
0 votes Thank Flag Link Fri Sep 17, 2010
Hi Karen, it really depends. The banks/lienholders are hugely informed about what the market value of a home is -- regardless of whether it is a short sale or foreclosure. The banks/lienholders send out agents to do BPOs -- or Broker Price Opinions -- in order to ascertain market values. So if you think the banks are just pricing things out, they're not -- they're surprisingly regimented and even use formulas as to when/how long to reduce prices! Where you're going to have the flexibility in price is (1) what kind of financing you're utilizing -- all cash is best (2) if the property you're interested in has no other offers, you have more negotiating room (3) the condition of the home -- if it's a major fixer, it's probably not going to be financeable, which means investors who are paying all cash have good leverage to purchase it at a deal. There you have it, a bit more complicated than what you wanted maybe, but there are definitely a few factors to consider.

Best of luck!

Caroline Choi
Broker Associate/EcoBroker Certified
http://www.CarolineSellsTheCity.com
0 votes Thank Flag Link Thu Sep 16, 2010
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