Property Q&A in Chesapeake>Question Details

Patricia Lyn…, Both Buyer and Seller in 23321

Is this property " bank owned? " or " Short sale?"

Asked by Patricia Lynch, 23321 Tue Mar 10, 2009

This question is about this property:…

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Hi Patricia,

It really doesn't matter whether it's a bank owned or short sale, all offers are still contingent upon lender approval. And in both cases, the property will be sold "AS-IS" with seller/lender doing no repairs at all. Typically, banks will only make repairs when said repairs are stated in the appraisal report; home inspections are for informational purchases only.

Mortgage companies, much like regular home sellers, are at first resistant to pricing a property based on current market conditions. These properties typically sit on the market for 3-5 months with little or no showings and only after this time, will the banks decide to drop the price. And over these months, I've seen banks turn down perfectly fair offers, and I feel this is the case with this property. It's priced nice but not considering "no repairs."

I've represented many buyers who have purchase bank owned and short sale properties, and all have gotten some really great deals! I honestly feel that these types of properties can provide buyers with great opportunities however, the strategies I use in approaching these "unique sellers" is completely different than when approaching a standard home seller.

There's nothing short about a "short sale."

After an offer is submitted to the lender, a bank will typically take about 7 to 10 days to respond to your offer. Recently, I had a bank take 7 days to tell me they need one more special bank addendum signed by my client. Yes, my clients are getting a 12 year old home for about $12,000 to $18,000 under assessed/market values, but the delays sure did place a lot of added stress on my buyers too. If you have a property to sell in order to buy another property, a bank owned or short sale may not be the best route as they often do not allow for delays in closing and demand the deal closes on time.

But in that area of Chesapeake/Western Branch, I have to ask... why buy a 15 year old property for $235,000, in "AS-IS" condition with "no repairs," with probably a 15 year old HVAC system, when there's plenty of new construction and pre-owned for the same price or less? I see several pre-owned homes on the MLS whose sellers are willing to pay up to 1% of the purchase price to fix any issues discovered in a home inspection. Take a look at some of these listings and you'll see what I mean.…

Yes, bank owned & short sale properties can be the best thing since TIVO, and many of my clients have purchased home for $10,000 to $35,000 below market/assessed values. But in my experience, buyers who have a flexible closing timeframe, those who can wait for the right opportunity to come along, receive the best terms and price.

I think this property has a little while longer to simmer before it's ready to be served but if you have any other questions, please feel free to contact me any time.

Kind regards,

Frank Biganski, Realtor
EZ-Vest Realty, Inc.
(757) 303-0517
Assisting Home Buyers & Sellers Since 2002!
0 votes Thank Flag Link Wed Mar 11, 2009
This one is a bank owned property. It has been on the market since January. I can send you more pictures if you are interested in it. If you are not currrently working with a Realtor I can schedule a showing.
0 votes Thank Flag Link Tue Mar 10, 2009
Hi Patricia:
This property is a bank owned home. I would be happy to show it to you if you are interested. Give me a call at your convenience.

Nelene Gibbs, Realtor, e-Pro
Short Sale Specialist
William E. Wood & Assoc.
757 672-3232
757 547-9691
0 votes Thank Flag Link Tue Mar 10, 2009
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