If I am looking to purchase a short sale or bank owned property and have until June 2013, how long should I wait before looking?

Asked by h_moore205, San Diego, CA Wed Jun 19, 2013

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David Rudd’s answer
David Rudd, Agent, San Diego, CA
Sat Jun 22, 2013

I think the first question is why do you want to limit yourself to short sales or bank owned? Second, are you in a position to 'win' with your offer on those types of properties. Here is what I see as the typically successful offer for those properties (which have declined as a % of total market):

- All cash or at least 35% down
- Excellent credit
- Accept no to little repairs (after inspection)
- Many have past due HOA fees that they require a buyer to pay
- Willingness for a longer than normal escrow (Short Sales)

If you don't fit that model, then you may be banging your head against a wall, as offer after offer is not accepted.

By no means am I saying don't look at them, but I would not limit myself to only those types of properties. In addition, as the markets have heated up, banks are pricing properties very similar to traditional sales. Gone are the days of 20-25% below market pricing.

Hope this helps,

David Rudd

Kindred Real Estate

CA DRE# 01402946
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Jun 19, 2013
It is 2013!!!
Therapy is not working.
4 votes
you crack me up.
Flag Wed Jun 19, 2013
Steve Seper, Agent, San Diego, CA
Fri Jun 21, 2013
Hello Mr Moore,
Where are you living right now? Short sales vary with location, seller's lender, etc.
With prices increasing for the last 15 months in a row, short sales and foreclosures will soon be a thing of the past. I would move quickly, if you are looking for a "distress" sale. Email me if you need any help. Best,
-Steve Seper-
Balboa Park Realty, Broker/Owner
0 votes
Kari Shea, Agent, San Diego, CA
Fri Jun 21, 2013
Two months ago...

Mark & Kari Shea
Shea Real Estate
National Association of Realtors
CA DRE License 01713506
0 votes
John Juarez, Agent, Fremont, CA
Wed Jun 19, 2013
I suspect that you are laboring under the belief that you can get a “heck of a deal” on a distressed property. If the San Deigo market is anything like the San Francisco Bay Area market – and I think it is - you are in for an awakening.

In our area, inventory is very constricted. Buyers are scrambling to buy the scarce number of homes that are available. The strong demand in the face of the reduced number of homes that are on the market is a classic overbalance of supply vs. demand and prices are being pushed up.

Distressed house sell for less if they are in bad shape not because they are short sales or REOs. Distressed houses that are in good condition are selling very strongly in the current market.
0 votes
Cory La Scala, Agent, San Diego, CA
Wed Jun 19, 2013
Honestly, start looking six months, or more, ahead of time. And, it depends on your criteria. If you can search in a large geographical area, you'll have more homes to choose from. It also depends on your budget. Homes on the lower end are always in demand by investors and first time buyers. If your needs list is specific, give yourself more time. Right now inventory is very low, and some buyers have been looking for months and months already, because so many of the homes on the market are getting multiple offers.

I can send you listings now, so by the time you're ready to get pre-approved and visit homes, you'll have your search areas and criteria narrowed down already. It never hurts to get to know your market(s) early.

Let me know it you have any questions at all.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421 Direct
619-884-3452 Cell
Lic # 01443391
0 votes
Frederick Re…, Agent, SAN DIEGO, CA
Wed Jun 19, 2013
Hi, I am assuming you mean 2014...since right now is June 2013 :)

I would recommend looking about 6 months prior for short sales and 60 days prior for REO's and Foreclosures. Unfortunately by June 2014...those types of sales will be in the minority as the values have gone up 15-20% in the last 18 months.

I would be glad to give you access to some searches now so you can "track" the market for the area you are interested in as it's good to start early.

Frederick Remick
Keller Williams Real Estate
0 votes
Cindy Davis, Agent, San Diego, CA
Wed Jun 19, 2013

The market for buyers is extremely competitive!

Do not limit yourself to foreclosures and short sales...there are very few of either...the market for these has really come and gone.

Please let me know how I can help you!

Cindy Davis, Broker
(619) 379-8616
0 votes
Glenn Bennett, Agent, SAN DIEGO, CA
Wed Jun 19, 2013
Did you mean 2014? It's never too soon to start looking. You will get a great feel for the properties on the market which helps you decide to buy when you ultimately find the right one.
In my opinion, don't limit your search to bank owned or short sale properties only. If that is the seller of the home you choose, plan on it taking a little longer than an equity/normal sale if it is a short sale. The banks are actually getting up to speed if they already own the home.

Glenn Bennett
Cowles Mountain Realty
Lic# 00775681
619-583-8894 work
619-838-8856 cell
Treasurer San Diego Association of Realtors 2012, 2013, 2014
Board of Directors California Association of Realtors
0 votes
Craig G Hodg…, Agent, San Diego, CA
Wed Jun 19, 2013
Good one Ron ! My thoughts exactly
0 votes
Rod Powers, Agent, San Diego, CA
Wed Jun 19, 2013
Rephrase your question... this one does not make sense!

-- Rod --


31 Years of Service to the San Diego Families
0 votes
fiel barrow, Agent, San Diego, CA
Wed Jun 19, 2013
Hi short sales are taking a minimum of 3 months for approval so ASAP. Please feel free to call or email me for more info
0 votes
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