Real Estate Pro Articles
   
   

Short Sale Investing: Are the Banks Concentrating More on Short Sales, Instead of Foreclosure?



[Valid RSS feed]  Category Rss Feed - http://www.realestateproarticles.com/rss.php?rss=268
By : Trevor McNichols    99 or more times read
Within the last 12-24 months, in selected parts of the country the banks have been completely bombarded with foreclosures, and now they have got no choice but to lower their prices so, the people who buy REO's and know short sale investing, can make a great deal when buying a property directly from the banks. Many of the banks are now centering on Short Sales, instead of foreclosing.

Of course it depends on which section of the country you live in. Believe it or not, there are several regions of the country where home prices have not fallen that much, while other places of the country, like California, Nevada, Arizona and Florida, prices have collapsed. In the sections of the county where home values have fallen drastically, you are in position to produce a great deal when buying from the banks. In the parts of the country where prices have fallen just a little, you may not be able to make as good of a deal, but you should still be able to buy a home for around 15% or more below current market value.

As you may already know, in case you have obtained my courses, Iím just not a fan of utilizing realtors when buying or selling a home. Thatís because historically realtors sell homes at full retail value. If you ask me thatĎs just a bad business decision.

Purchasing at full retail, or anywhere in the vicinity of full retail value for a home is simply foolish, unless itís the home youíve been dreaming about and itís the home you want to reside in throughout your lifetime, but thatís not the norm, thatís a very rare exception to the rule nowadays.

We teach buyers to think more like a real estate investor, and many of us are not fans of utilizing realtors. I have never used a realtor to purchase or sell any previously lived in home. However, to buy an REO, it just may be to your benefit to make use of a realtor. BUT donít just use any realtor, find THE realtor in your home town whose expertise is Short Sales or REOís.

The reason for working with a realtor for these two types of purchases is 2 fold. First, you are buying the home at a Considerable discount and it is the banks that are paying the realtors commission. And second, the realtor just could be doing the majority of the negotiating with the banks for you, and I assume that lots of you may love that you donít have to negotiate yourself.

Thatís one factor why I authored a program related to how to complete a Home Short Sale. If you decide to use a realtor, you will possess much better understanding - Now you are going to know precisely what the realtor is doing so you'll be able to monitor what is going on through the short sale process.

Just because the realtor may very well be doing the negotiating for you, donít be so quick to accept the 1st acceptable sales price that they negotiate with the bank. In my opinion, when the bank will take the very first offer, you are paying way too much for the home. Step in when you wish to, because no person is going to look out for your interest as much as yourself. Guide the process along and remember, do not accept the 1st price. You want to make the bank squirm. Remember, in certain areas of the nation the banks have thousands upon thousands of properties they need to get rid of.

Realtors make a commission on the sales price, so they may not be looking to get you the very best deal on the home. They simply just wish to make a deal for you so they can produce a paycheck for themselves, so make sure that they are going to do the job in the negotiating process with the banks, getting you the best bargain that they can.

Don't let your emotions buy your next home. Make a good business decision on this occasion. My advice is to think more like an educated real estate investor. Make a terrific deal, or don't make any deal.

If the deal on the home falls through, there is no need to fret; there are lots more homes to select from. Just pursue another deal. Who knows, the next home just could be much better than the one you lost. And remember, get qualified for a financial loan and know what your interest rate is prior to deciding to even start the process so you will be ready to move quickly once you find the perfect home.

Figuring out how to buy a home in this real estate market suggests buying a home way below current market value. It only makes sense to understand how to complete a Home Short Sale.


Related Articles



Actions
Print This Article
Add To Favorites



Sponsors

 

 

© All rights reserved to Real Estate Pro Articles