Foreclosures and Short Sales
Buzz words... Foreclosures and Short Sales. Many buyers think that the only deals are foreclosures and short sales. Actually, there are other great deals around. The secret to getting a great deal is by being prepared to ACT and knowing the market! Timing is important.
Connect with a good Realtor preferably one that is a CDPE (Certified Distressed Property Expert). They can keep you informed of properties on the market and when they sell. Then when there is a "deal" you will have the knowledge to feel comfortable make an offer.
Many buyers miss opportunities because they think that if the property is a foreclosure or short sale they can get it for nearly 50% of the list price. This is a misconception... most foreclosures are selling on average 95% of the list price. And if it is a "real good deal" there may be multiple offers so it may actually sale for over list price.
Buyers need to be realistic about the market and be prepared to "own" the property for several years before it can be sold for a profit.
Another part to being prepared is to get preapproved for the loan. All offers but especially foreclosures and short sales offers should be presented with a pre-approval letter or if the buyer is paying cash... a letter proving that the funds are available.
It is a buyer's market... take advantage of it!
