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Foreclosures and Short Sales| Which is HOT which is NOT?

06 Jul

Early this year everyone wanted in on the action.  Truly it was amazing how fast some people were able to write an offer on these in what seemed like minutes after they first went active.   I have always been quick on my feet and helped many buyers get in the door first.  I lived for this and still do.  Often the good ones would go for less than $5,000 off the list price and many under $100k were selling for better than full price.  

With so many people getting in on the action this was and still is quite a problem for the buyers that are looking for their first investments potentially rent out or to flip that home.   Many thought I was crazy telling them that they would need to offer full price or more to have a shot at landing that property.  Even more so if our parents or friends told us to make an offer at least 10% below asking price.   So what do I know?  I’ve only been selling real estate for the last decade and show 100’s of homes a week.  Often times losing out on the one they really wanted, was the only way to see I wasn’t bluffing.

As a Real Estate Coach, my focus is on getting buyers and sellers the best deals possible and to help guide them through murky waters and analyse the market changes so that they are better pre-pared when they make the decision to climb on in.   Sometimes the best deals are already priced at prices that we would normally be able to call a steal some 50-70k below the market value.  The problem is most of us have a hard time offering full price on a property regardless of how low it is priced, because that is not what we were told to do.  Times have changed and so has the market.  Many of these types of homes, the investors can’t even get their hands on them because the owner occupants have the first chance at them.   Now, the inventory levels are becoming fewer and fewer.  That doesn’t mean that we are done with foreclosures, not by a longshot, but it does indicate that banks are not in rapid fire mode either.

Now, with more flexability than ever, the Short Sales are climbing the ladders.  These to can be a big hit for investors, but the trouble with many of these is that not all of them will be granted a short sale in the end and it can tie up a good amount of your time.    It can be a great way for a buyer to a get a much better house, even though it may still need work too.  The question though is how long are you willing to wait for that chance before throwing in the towel, and moving on to something else.   As a Owner Occupant or an Investor licking your chops, if your short on patience, this isn’t the avenue for you.  

The Foreclosures are still popular but numbers are low at the moment- Investors may be better waiting till the fall or watching for the extended market deals to fall their way, currently they are not as HOT as the Short Sales.   Since this seems to be the biggest jump in recent months, having a short sale specialist with the know how is the biggest advantage for these.  I’ve been pretty successful with many of these, but my patience is tested many times.  Image

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Posted by on July 6, 2012 in Uncategorized

 

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