In any buyers’ market, the quest for the best deal is foremost on the property seeker’s mind. But there are many misconceptions about what constitutes a great opportunity. Just because a home is listed as a “short sale in Trinity!” does not mean it is your best option. And the same goes for bank owned properties; on all fronts, buyers need to be very sure about what they are getting themselves into.
Short Sales in Trinity – Pricing vs. Value
For instance, a “short sale” does not mean it is listed at a better price than other homes in the neighborhood. The lender wants to recover as much of the money owed to them as possible, so the amount they agreed to accept from a buyer is typically pretty much in step with fair market value.
Besides, there are a ton of motivated sellers on the market whose homes are priced as well as any short sale. The difference to the potential buyer is that these sellers are adjusting their prices commensurate with market fluctuations. Today’s short sale property could potentially be worth less after the three, six, twelve months that it can take to get the contract to the closing table.
A short sale property may not be receiving the best care. Since the seller is likely encountering financial difficulties, they may be prohibited from consistently maintaining it.
And if you go down the road of a bank owned home, you won’t have benefit of a real live seller with whom to negotiate repairs; and the pool, roof, and lawn may not be in the best condition. You are instead dealing with a financial institution that is backed by a battery of attorneys; your list of repairs and your concerns are inconsequential.
Short sale or bank owned — you may not just be capitalizing on someone else’s misfortune; you may very well be inheriting a headache, tread cautiously.