Short Sales, Bank Owned Properties (reos) and Standard Listings

Posted on March 9, 2010
Filed Under Short Sale |

Everyone says it is a Buyers Market and to Buy Now. Is that really so true if almost half or the majority of real estate sales are foreclosures, REOs and short sales. It seems to be more of a Bankers market.

SHORT SALES:
Short Sales may be a great buying opportunity.  The major complaint from people is the time involved to get it approved by the lender for the short sale price.  The home is normally listed by a real estate agent for a value that they feel is right to bring buyers, and will be adjusted accordingly once the lender has finished a complete home valuation analysis to determine the actual sales price.  The majority of the time the lender approves a sales price below the current market value just to sell it quick.  One needs to remember that prices in the first-time buyer range have lots of competition which could make it bidding war.

Immediately after the lender approves the short sale and home value, time must pass before it is actually gone. The time involved may range between 3 to 6 months or more until it is actually gone.  Although, during that time anything can happen such as the seller could work out a loan modification, not show the home to prospective buyers and simply let it go into foreclosure.  If you have made an offer on a short sale, do not be surprised if more offers arrive once there is an approved short sale.

BANK OWNED HOMES
Bank owned homes are the ones everyone wants because they are priced aggressively and  ready to be purchased.  There is no long waiting. You simply need to act before the competition.  When a bank owned home comes onto the market, you will want to be one of the first ones to make a solid and strong offer.  The better your offer, the more chances you have to win.  A worthy offer to the bank is one that is close to the listing price, or above the asking price, with a large down payment or an all cash offer. People can find  Bank Owned Homes in most major cities and suburbs.
 
“NORMAL” MLS LISTINGS 
If you are like most people, they are looking for a bargain or discount when it comes to most consumer items and even more so when it involves buying a home. Buying a home that is listed on the multiple listing service which is not a short sale or a bank owned home you can still find a good deal if the seller priced their home aggressively. Some sellers are doing it simply due to personal reasons such as work or other financial debts.  You can still offer what you think is a fair price to the seller and even somewhere close to an exact property that is a foreclosure that sold down the street.

Frank Collins
http://www.articlesbase.com/real-estate-articles/short-sales-bank-owned-properties-reos-and-standard-listings-709604.html

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