Where are the best deals?

Are the best deals in short sales or are they in foreclosures? This may surprise most buyers but the best deals are in non distressed sales or traditional sales.

Facts behind about short sales and foreclosures… There are currently 36,000 Foreclosures in the united states and 832 in Florida. Many of the foreclosures you see on the market today are not actually foreclosures. Many are investor own properties that the investors list as REO/Foreclosures because they will get more activity if they call them a foreclosure. “One of the biggest problems we are having with selling our foreclosures is not underbidding it is actually over bidding” Lee county BOA executive. The foreclosures attract so much attention that they will draw multiple bids and buyers end up over paying for a property that will not appraise for a loan.

Wondering why that foreclosed home has been sitting empty for months to a year. Banks are not purposely holding inventory off the market to keep bad debt off their books. Fact is, some properties have many liens against them which take lots to time and not to mention lots of attorney cost.

Short Sales are another avenue that buyers are drawn to. Shorts sales are the largest volume of distressed property inventory with 57,000 new Short Sale applicants just last year. Heard of the Shadow Inventory that many people say will flood the market driving pricing further down? The Shadow market just stepped out into the light. There is no shadow inventory the so called shadow inventory is these short sales that could turn to foreclosures if a short sale isn’t able to be executed. In order for a short sale to go through the bank has to approve the sale as bei Great Deal in Shadow Wood ng “Market Value”. Which means it is not a steal! Especially after the effort of waiting and jumping through loops for the banks and after several months you may or may not be able to purchase the property.

After the dust falls from over bidding on foreclosures and buying a “Market Value” short sale where are buyers finding the best deals? From realistic sellers with equity in their homes or enough cash to bring to the table. Not only are realistic sellers the only ones selling for under market value at times but these homes are not selling As-Is meaning they will make any repairs after your inspection is made. These homes are typically better cared for, cheaper, less risky, deal with single offers and the list goes on.