In your opinion what represents a better deal......a foreclosure .....or........a short sale? Let the debate begin :)

Asked by Shane Willis, Pensacola, FL Fri Apr 8, 2011

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Shane Willis’ answer
Shane Willis, Agent, Pensacola, FL
Fri Apr 8, 2011
Alright Terri comes in with a multi colored jersey on (Love the apple or orange analogy), BUT if you count her answers up it seems to me tht she is voting for the foreclosure as an easier transaction.

So we now stand at
Foreclosures 2
Short Sale 1

Whos next?
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Tesa Morgan, Agent, Gulf Shores, AL
Wed Apr 10, 2013
In my opinion, the better deal is the one priced at market with the most amenities that fit your needs. Lenders are well aware of the market and are pricing at market value. So are most other sellers so why not make an offer on the better deal for you. Whether it is a foreclosure, short sale or just a regular seller looking to get market value, the better deal is the one that fills the majority of your real estate needs at a price you are willing and able to pay. Trust the real estate professional involved to supply you with the required information to assist you with an offer. The market sets the price, not the lender's position.
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Terri Vellios, Agent, Campbell, CA
Fri Apr 8, 2011
Hmmm, what taste better an apple or an orange? The "deal" is as unique as each house and transaction is unique.

With a short sale the seller needs to make certain disclosures. REO's are exempt.
Short sales take longer. REO's quicker for response and close.
Short sale may be difficult to get seller out. REO usually vacant.
Short sales perhaps has been maintained and utilities on. REO - perhaps not.
Short sales no guarantee that the seller will leave the property as the buyer expects. REO buyer pretty much knows what it's going to look like at closing.
Short sales take so long the borrowers interest rates may go up while they wait and loose the lower rates if it never closes.
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Shane Willis, Agent, Pensacola, FL
Fri Apr 8, 2011
WOW okay so here are the points

BG puts a point up for foreclosures since in their opinion Shorts have a lower tendancy to sell. Good point. If the listing agent does not know what they are doing it could be a waste of time.

Suzanne puts a point up for Shorts because of the potential deferred maintenance that a buyer may have to pay which could eat up the costs savings of the purchase price.

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Suzanne MacD…, Agent, Succasunna, NJ
Fri Apr 8, 2011
In my area it's definitely a short sale. First of all, most are owner occupied until closing. This may not guarantee against deferred maintenance but foreclosures sometimes sit empty for a year or more before going back on the market, often without being cleaned out, and so begin to actually detiorate. We also have to deal with under ground oil tanks that may be leaking, causing a hazardous spill and banks won't do the repairs. I actually saw a beautiful foreclosed home in my own neighborhood that had been closed up tight as a drum during one of the wettest springs in history and became absolutely overgrown with mold by the time it was put back on the market the following autumn. The reason foreclosures are so much less expensive here is because they require far more repair. Short sales may take longer, but as long as the buyer is willing to take a more reasonable discount and be patient they definitely offer the better deal.
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BG, Home Buyer, Phoenix, AZ
Fri Apr 8, 2011
gezzz .. it is Friday and no one wanna play ?? :)

no comparison because 80% (I heard) of Short sales never closed.
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