I share this articles statement that bank owned properties are “still” fetching big bucks.
I have clients come to me all the time saying they only want to see bank owned and short sales. I ask why. They say because they only want a deal.
Bank owned properties sell at market value! Same as a none bank owned. The reason is banks have lots of capital and if they fall short, the government (tax payers) pay the shortage. Their is nothing they are trying to protect and nothing to motivate them otherwise. Simply put you offer what they want and you get it. But what they want, is what the market says they will get.
A private sale is different. The seller may have a job transfer or lost their job or spouse died and need to sell. They want to protect their reputation and credit.
This is where you can find opportunity. Unlike bank owned, there is motivation.
Regarding short sales.
You can find deals in short sales, most of the time. Hot markets have so many buyers, they still fetch market value.
The problem is in a short sale, you have zero control over the process. You could be in contract for months and months and seemingly they go nowhere. If you “need” to find a home, short sales is not going to fit your timeline as there isn’t one. However, short sales can offer an opportunity for those who “want” a home and if time is not an issue, as the “need” people steer clear of a short sale due to the difficulty in getting one to the closing table.
I have a short sale I’m working on now. We made an offer February, 2017. We received a verbal yes just a few days ago, in August, 6 month’s later! Even then, it is a verbal. There could be month’s yet to go! Or even never go, as no signature means, no contract for them to breach and be held accountable.
My client could have just lost a year of their life and now has to pay a higher price for something else.
Since the market has risen in the last 6 mo’s, the deal is even better today. But even that’s relevant because had they bought it then, the equity gain would still be the same.
Buying and want a deal? Talk to me about your situation and I’ll help you find one.
Curtis Rudolph Realtor®
Charles Rutenberg Realty