Find Your Home!

Tuesday, May 17, 2011

Why a foreclosure is cheap(er) than a short sale…

The only thing they share....both are considered "distressed properties."  Otherwise...
  1. Foreclosures and short sales are not priced the same.   
  2. Foreclosures and short sales are not the same
In my opinion when the time comes to get rid of these REOs many banks just want to unload them - period. Foreclosed homes usually have been sitting vacant (and deteriorating) , possibly even vandalized!

For sale at great prices!  Cash deals, no repairs, "As is, Where is" at a deep discount!

They price the foreclosures lower than other properties in the neighborhood and are willing to take a loss.  Why?  Because - it was a foreclosure and (here is where the banks will dispute my assertion) and the banks don't care!

There is some discussion in the markets about a few lenders deciding to invest in new paint, fix ups, curb appeal to get a better price.  Wow!!!!

This small investment could pay off nicely for the bank and the neighborhood as the better sale prices adds some stability to neighborhood home prices.

Buyers considering foreclosures and short sales I encourage you to understand the difference between a foreclosure and a short sale

By the way, it is easier to find a short sale in perfect condition than a foreclosed home in perfect condition!

Follow by Email