Distress Sales are a Great Source for a Vero Beach Bargain Home
Purchase
It can be argued that anyone who has their home on the market
now is a motivated
seller. Why don't they just wait for home prices to recover and
avoid losing their equity?
Many reasons actually:
- Death, Divorce, Job loss, Health Issues
etc......
- Relocating and don't want to manage a rental from
afar
- An opportunity elsewhere - lose here, gain there
Whatever the reason, it creates an opportunity for the informed Vero Beach
home buyer.
Many potential home buyers do not want to deal with some of the issues that can
arise when a home must be sold as a "Short Sale" or is a
foreclosure.
These issues may include, but are not limited to:
- Lengthy response times from the lender to a purchase
offer
- Deferred maintenance because of the seller's financial
situation
- The need to make repairs, some of
which can make financing difficult
By carefully analysing the time on the market, prior sales
history, comparable sales
and current value, these bargain homes can be found. Buyers
who limit themselves
to just foreclosures or short sales are missing a good
portion of the current market
of Vero Beach homes for sale.
Too many buyers today are not realistic about the price they will pay
for a home.
Perhaps they watch too many late night TV infomercial's claiming you can buy homes
for a few thousand dollars. The lowest price is often determined by what an investor
will pay for potential cash flow. The recent sales increase in 3/2 homes under
$100k has been driven by investor purchasers seeking a
return on their investment.
There is also a common misconception that lenders will do anything to
avoid
a costly foreclosure situation. The truth is that they are
partially insured against
some losses and will write off others. They have a very good
idea of current value
from their selling agents and price accordingly. Lenders are
motivated to sell quickly,
since they must stay below a predetermined ratio of good to
bad debt, but are
still targeting close to value.
Whether a home is a distressed sale, short sale or foreclosure, an
informed and
prepared buyer will always get the best deal! Studying the market,
analysing
specific properties and pre-qualifying with your lender are critical
components.
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