Good information given. Ask yourself the following.
1. Do you have to be moved in a certain time frame? If so do not consider "short sales". Often the Lender on a short sale will not even do a BPO (Broker Price Opinion) until they receive an offer. The list price may not even be acceptable. Have your realtor check out the debt ratio to list price. As the first offer, you may just be a guinea pig to get the ball rolling. Once they do BPO they need to decide if they are willing to do a "short sale" vs. "foreclosure", determining where they will lose less. And then there is the wait to see if they can get a better offer. This waiting period is usually 45 plus days. If there is more than one lender the chances of closing decline drastically.
2. What is your financing situation? If you are looking at a "Short Sale" or bank owned, they are going to be examining your ability to pay. They don't want to end up in the same situation a couple of years from now. A larger down payment or cash is going to carry weight in these situations, especially if there are multiple offers. As the others have stated, if it looks good to you it probably will to others also. You need to see them as soon as they hit the market and move quickly. Those who think that because it is a "Short Sale" or "Bank Ownedâ€, they can go in with a low offer are wasting their time. These are the Sale Prices. If the bank owned property has not been on the market at least 100 days, don't be looking significant price reductions. Have your financing in order before you start looking. If you are paying cash you will need to show proof of funds.
3. Which will close faster? I would say almost always, if not always, a bank owned property closes quicker, and it closes. Short sales can run on with the buyer in limbo for months, only to find out a second lender won't agree and it becomes a dead deal.
4. Important point Loretta brought up.... Why only look at short sales or bank owned? Presumably you are looking for the best deal. It very well could be an estate sale or a motivated seller with equity that HAS to move. Don't limit your options. Discuss your home requirements with your realtor and then let her find the best choices out there that meet your needs.
If you are not already working with a realtor, I 'd be happy to assist you. I have a free service called â€œListingbookâ€, which I provide for my clients. It is like a back door into the MLS, which updates daily: price changes, solds & withdrawns, allowing you to really be able to follow and learn the market. I set up a basic search according to your guidelines. Once you are in, you can change the parameters, as you need. If this is something you would be interested in let me know.
Broker Associate, GRI, CDM
Prudential Tropical Realty