Should I Buy A Foreclosure?
By Dave J.
The question, “Should I buy a short sale”, is not to be taken lightly. The process of selling short involves the bank agreeing to take a pay-off amount on a loan that doesn’t quite pay it off. By the nature of the “short sale” business, the sale indicates that the property is being purchased under value. And that very well may be true. Just make sure that you can purchase it under today’s value, not under yesterday’s (or last year’s) value.
To be more clear, the value of Real Estate has nothing to do with the amount of money that was lent against it. If a house had a $400,000 loan on it, and the bank allowed you to purchase it for $350,000, then many people would brag at cocktail parties that they just stole a property. As we know, the truth of the matter is that the property may only be worth $320,000.
Listed below are nine items that do not affect the value of your property, or the property that you are thinking of buying. They may seem silly and trivial. However, the majority of the population feel that one or more items in the following list, actually affect value. There is only one think that affects the value of your home; What Someone Will Pay For It.(period)
- What you paid for the house
- What your neighbor got for their house
- How much you owe on your house
- How much your upgrades cost
- What you need to buy your next house
- What the tax assessor says it’s worth
- What I say it’s worth
- What an appraiser says it’s worth
- What another realtor says it’s worth
In a nutshell, the answer to the question, “Should I Buy a Short Sale”, is most easily answered by finding out if you are able to buy well below retail value. Retail value is best described as “full price”. That should not be confused with full “asking” price. Retail value is achieved when neither side is “distressed”. The buyer is not exceptionally motivated and the seller is not exceptionally desperate.
Short Sales pose potential savings because one side is clearly distressed – the Bank. They don’t want the property. If you determine that you want the property, and you can get it well below “retail price”, then go for it.
You can learn more about Should I Buy a Short Sale at Review-RealEstate.com
Article Source: http://EzineArticles.com/?expert=Dave_J.
http://EzineArticles.com/?Should-I-Buy-A-Foreclosure?&id=1176680
