Relocating from a state where the home prices are much cheaper. Should I consider short sales and foreclosures in order to buy a comparable house?

Asked by Sunnygirl, Gaithersburg, MD Thu Aug 4, 2011

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10
Bruce Lemieux, Agent, Gaithersburg, MD
Thu Aug 4, 2011
Hi,

I get this question a lot. When looking for homes, look at all homes in your desired price range and area. If you concentrate only on distress sales, you could easily miss out on regular sales that are in better condition - and are a better value. Short sales are typically only an option if you have a long time to wait. There are exceptions, but that's the rule.

Hope that helps. Good luck.
Web Reference:  http://mocorealestate.com/
2 votes
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Thu Aug 4, 2011
Sunnygirl,

I would look at short sales and foreclosures but as Bruce said don't ignore regular sales either. You could get a good deal and a great interest rate. Also they aren't called short sales because they are quick. So if you are on a timeline it might not work. They also have a higher failure rate than a regular sale also. Just want you to know what some of the risks are. Talk to a few local loan officers and get an idea of what you can afford. My first question would be "how much do you wish to pay for a mortgage"? Then I would match that up to a price range, pre-qualify you on credit, income and assets and turn you loose with a realtor. Hope this helps and let me know if you need more.
THANKS,
Web Reference:  http://www.monarchmtg.com
1 vote
Dan, Home Buyer, Alabama
Thu Aug 4, 2011
The only luck at good deals I experience are with those that own without any mortgages. these owners can drop their prices to my sweet spot. Hard to find because so many old timers took out heloc's and now they are economically destroyed.
1 vote
John Potter &…, Agent, Frederick, MD
Tue Nov 29, 2011
Sticker shock is pretty common in this area. I think you'd benefit from an agent who knows the area and market well that can help you find a house you will love. There are some others areas that are a little cheaper that may offer you a larger house with a little commute. I'd be happy to assist if you haven't found someone to work with in the area yet. Please give me a call. Sharon Bremer 301-676-4031
0 votes
David Ni, Home Buyer, Clarksburg, MD
Sat Aug 6, 2011
I'm currently selling my house and I also purchased a new house. I believe foreclosures are good for people that can live with things broken and messed up in the house. Eventually have he extra cash to fix it or do-it-yourself. If you dont have either I recommend buying a decent home. Like the first few agents said you should look at how much you can afford by talking to a loan officer or going online and do some pre-qualifying calculator. You might have an idea. I think the best bet is for you to determine how much money are you willing to pay monthly to buy a house. $500, $1000, $1500, or $2000. From there you can decide on what type of house to get. Good luck.
0 votes
Juan Bassett, Agent, Rockville, MD
Thu Aug 4, 2011
Hi SunnyGirl, In your statement you mentioned that homes from your previous state are much cheaper. Although the prices here may be higher, I believe you should first decide what your budget will allow . Your considerations should be how much down payment you have, what interest rate you will have and the monthy payments.. Also the considerations should involve the amount of space you will need. So even though the housing prices on average are higher. There still could be a home out there with your name on it that you will be able to afford. Sometimes a specific location will offer the type housing and pricing you desire. That's where your realtor comes in to assist you in finding your dream home. Feel free to visit me at : http://www.newmarylandtownhomes.com to search for your new home or complete the "find my dream home" form on my website. Enjoy your day.
0 votes
Piero Marinu…, Agent, Silver Spring, MD
Thu Aug 4, 2011
Sunnygirl, a short sale or foreclosure is considerably less than comparable "regular sale" homes in the same area when they are in poor condition. When the condition of the properties are all the same, the market of buyers have a tendency to equalize the sale prices, even if the asking price is a little lower.

That said, if you are patient and stick to a plan that suits your needs, there are great deals out there in the short sale and foreclosure markets if you act swiftly. Another good place to look (as was mentioned by a another respondent) is listings that are estate sales - if the right combination of factors exist, you can pick up a nicely maintained property below market.
Web Reference:  http://www.callPiero.com
0 votes
Ronald A Ale…, Agent, Urbana, MD
Thu Aug 4, 2011
Foreclosures and Short Sales are going to be with us for a while. Short Sales if handled by an experienced short sale agent do not present anymore of a problem than a normal direct transaction. The downside is they do take a bit longer in most cases. Foreclosures can be much quicker but once again need to be handled by an experienced agent to avoid problems. You will save money going either route, but area CMA prices for a direct transaction are also impacted by foreclosure and short sales, therefore saving you money also.
0 votes
Stephanie Co…, Agent, Dunkirk, MD
Thu Aug 4, 2011
Hi Sunnygirl:
I would definitely look into foreclosures in the area, ther are some great deals out there and depeniding on the bank that owns the property many now are being freshly painted and have new carpet and minor repairs. You can get some good deals on Short Sales also, but you have to be prepared on the "waiting process" which could take 4 months for bank approval in all reality.
I would be happy to send you some listings in the area you are intrested in that are good deals for the money in that area. Feel free to email me @ smcorley@msn.com with the specs you are looking for in a home.
Are you looking to stay in Gaithersburg area?
0 votes
Dan, Home Buyer, Alabama
Thu Aug 4, 2011
Until the banks make buying from them quick and easy then I refuse to get into their mess.
0 votes
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