Author Archives: Lesley Mitchell

Which is a better deal, a short sale or foreclosure?

18982398_SWhen it comes to distressed properties, is it better to buy a short sale or a foreclosure? The answer: It depends on where you want to buy.

Both types of distressed properties can provide an opportunity to purchase a home at a substantial discount. Whether a short sale is a better bargain than a foreclosure (or vice versa) depends a great deal on the neighborhood in which you’re buying. In some areas, there are more short sales on the market than bank-owned properties (also called REOs or foreclosures). Higher inventories can make it easier for buyers to get a great deal. Low inventories make it much more difficult and drive prices up.

In other markets, foreclosures are more plentiful, which provides a great opportunity to purchase that type of distressed property. Want to learn more? We would be glad to show you the opportunities available in your area of interest!

Buying a foreclosure: An exercise in patience

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Thinking of buying a bank-owned property? There are many tempting deals out there. But many buyers aren’t prepared for the time involved in purchasing a home that’s been repossessed by a bank.

That doesn’t mean you shouldn’t buy. But you should be prepared for a process that will undoubtedly try your patience.

For starters, buying from a bank can be a slow process. Once you make an offer, it can take days or sometimes weeks for a response. Though some banks work quickly, others do not. In some cases, the offer and counteroffer process could take quite a while.

There’s one more thing you should expect: Little information from the bank about property conditions. Banks don’t issue the same property disclosures that are required of ordinary sellers. So a home inspection is a must. Although banks typically sell a foreclosure property ‘as is,’ it’s important that you understand what kind of house you’re getting yourself into before signing the paperwork!

Are foreclosures worth the added hassle? Ultimately, bank-owned properties can be a source of bargains. But there are plenty of other ways to get a great deal, too. Give us a call and we can help you find the best deal for you and your family!