Whether you’re considering a distressed property as a primary residence, or as a rental investment, there are a variety of options to choose from. Short sales, foreclosure properties, and bank-owned (REO) properties all have their own 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 speedy as their name indicates, these types of properties can be ideal for potential homeowners and investors alike.
Though every sale is different, there are three primary advantages to purchasing a short sale.
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 $100,000 on a home that’s appraised for twice that.
A house that’s 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. Also, since the seller is vacating by choice and not force, they’re less likely to damage 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 will likely be in better cosmetic condition.
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? The pros at Metrowest specialize in these types of sales – give us a call, we’d love to show you around.