Short Sales – Are They Worth The Investment?2 years ago
Many people are on the fence regarding what a short sale is and can do. More than likely you have heard more negative than positive about these sales. However, many individuals have no problem with real estate short sales. It can be a great deal for an investor and may not be so bad as you think. The reality is that they exist especially in bad markets, and it may be the best opportunity to get the best deal on a home.
Real estate short sales will cater to the specific individuals and investor. Only those with experience and patience are encouraged to approach them. The benefit with a short sale is that there is no risk and possibly no private money needed. They are also very easy to find on the market. Many home owners who have been approved for a short sale with their lender are determined to sell their house, setting up a great situation for a great deal for the investor.
The down side to purchasing a short sale is that typically the banks are very stern about the selling price, especially if they own it. It can be very hard to negotiate any type of deal to get the cheapest purchase price possible. Also, state laws vary and if you are an investor who purchases all over the country, then real estate short sales can be very time consuming to deal with and may not be worth your time. More than likely, chances are that a home in a short sale will not have any equity in it –which means the investor will need to hang onto it for awhile or rent it out.
Real estate short sales still remain neutral, and they are for some and not for others. The best thing to do is find an agent who has experience with them and knows the process. A lot of agents will not even touch a short sale due to the hassles they have experienced with banks. Many investors will not look at short sales due to the simple fact that the home owner is looking for pretty much a bail out. However, if you are an investor and truly love the house that you are looking at and see it as a great investment opportunity, then you should definitely pursue it.
As a human act of kindness and from an investor standpoint, purchasing real estate short sales can help out others. Many are stuck in their homes and are simply looking to get out. If you are an investor, you could do a good deed and help them out. By purchasing their home you will help them save their credit and keep the neighborhood values higher and more even. No matter what the situation, real estate short sales are great investments for the investor who has experience.