If you’re considering purchasing a distressed property – either for your own residence or as an investment, there are a variety of options to choose from. Short sales, foreclosure properties and bank-owned (REO) properties all have a unique set of advantages and disadvantages.
Here we’ll check out some of the pros of going the short sale route. While they may not be as fast as their name indicates, these types of properties can be ideal for potential homeowners and investors alike.
- Lower Price
Short sale homes can often be a deal, but it’s important to be realistic and understand that each one isn’t going to necessarily be a steal. In other words, you’re not going to want to offer $150,000 on a home that’s appraised for twice that.
- Home Condition
A house that has gone through a short sale, versus one that has been foreclosed, is usually in better shape for the buyer since it hasn’t been abandoned for months, and that no seller is likely to have exited, damaging the home out of anger. So while you may not get a bargain basement price on a short sale that you might on a foreclosure, the home likely won’t look like in belongs in a basement bin either.
- Better Financing Terms
Even though a short sale requires the bank to agree to sell the home for less than the value of the current loan, short sales often represent the most cost-effective option for the bank. Rather than continue to receive no money on the property, the bank is often eager to sell the home at a short sale, which can help the lender recoup at least some of the loan costs.
Are you ready to start checking out short sale properties in the Denver-metro area? Give us a shout – the pros at Metrowest would love to show you around!