Forclosures, Short Sales? Are they everything you think?
In today's market there are forclosures and short sales left and right! However, are they everything you've been told?
The answer is not always yes.
Short Sales - The easy way to explain a short sale is - When you sell the property for less than you owe the bank.
Short sales can sometimes be a costly and a drawn out process for the buyer and they seldomly work out in your favor. Once a buyer makes an offer on a short sale that offer is then sent to the bank with a preliminary HUD statement ( a break down of the transaction/settlement statement ). The bank (lien holder) then analyzes this to determine their loss. A lot of the times the price the bank wants and the price that was advertised can be very different and most of the time much more. For example: Joe thought he was purchasing (and had a contract on) 123 Maple Lane for 125,000 and the bank said "No, 145,000 is all we can do". Short Sales are also sold AS-IS and that eliminates your right to get the home inspected or get out of the contract if you find major structural defects after the fact. Seldomly do short sale purchases even close!! You might end up paying an attorney, mortgage application fees, and other pre-paids.. just to find out that you cannot purchase the home! Another thing to keep in mind is that when a property is a short sale, you normally don't get a yes or no from the bank for up to 60 days! The worst thing is that just because it's a short sale doesn't mean you are getting the best deal. There are many motivated sellers in this market that owe little or nothing on their homes and are willing to cut prices below what you would eventually be paying for a short sale. My question to you is; Is all that risk and uncertainty really worth it?
Forclosures - Almost everyone knows what a forclosure is these days. A forclosure is a property owned by the bank for one reason or another.. not just because someone didn't make their payments.
I get buyer clients all the time say "we want a good deal.. so we just want to see forclosed properties". My response is " A forclosure doesn't always mean you are getting the best deal ".
As with short sales, there is always uncertainty when pruchasing a forclosure. You are still purchasing the property as-is, the bank has no past knowledge of the property, forclosures are often in pretty bad condition, and, most importantly, it's the "bank's way or the highway" so to speak!
Sometimes buyers end up paying more for a forclosure than they would end up paying on a different property that is owned (with no mortgage) by Mr. John Doe who really needs to sell because he was relocated for his new job or just got a divorce.
Moral of the story is; While there are forclosure deals in the Myrtle Beach and Pawleys Island area they aren't always the best deals. Also, it's best to get an inspection prior to making an offer on a forclosure so you know what you're getting into... that $350 home inspection could save you tens of thousands in unkown structural defects down the road!
If you are interested in property along the Grand Strand or Low Country ( Myrtle Beach, Murrells Inlet, Georgetown, Longs, Loris, Conway, Little River, Pawleys Island, etc) PLEASE call Jake Lee 843-240-0431 or Ann McKinnon 843-907-6899 two of Myrtle Beach's top producing realtors who have the knowledge and experience to make your home buying or investing experience a success!!!
With the current interest rates at all-time lows and home prices low, right now is the time to buy or invest in Real Estate for your future!
You can also visit www.SCRealEstatePartners.com to browse homes for sale in Myrtle Beach,Pawleys Island, Murrells Inlet, and other Coastal Areas of South Carolina or to request a list of forclosures!!!