Pinetop White Mountain Blog

Good Evening Everyone!

If you have been wondering what has happened to me the last couple of weeks I'll tell you, I have been BUSY BUSY BUSY!  Yes the properties are moving again and the Buyers are back in the marketplace.  That is a good thing overall but I hear a lot of confusion and fear still in the voices of those who would like to buy property. 

What are they confused about you ask?  Well, it is what is the best way to go.  Almost everyone who comes in looking for property these days think they want to buy a foreclosure or Short Sale property.  The media keeps touting what a great deal they are so buyers feel that is the only way to get a good buy in today's marketplace.  

This simply isn't true.  There are some excellent values in today's market being offered by traditional sellers who are willing to go the distance to make the sale happen.  Sellers in most areas are motivated to sell, they will look at offers if they are reasonable, and they will complete repairs necessary for their buyer to obtain financing.  This is NOT TRUE on foreclosed or Short Sale properties.

Bank Owned properties are sold "AS IS" and their Counter Proposals often take away every protection you will have under the traditional State Approved Contracts for Sale.  If the home needs repairs in order for you to obtain financing in most cases you as the buyer are going to have to foot that bill.  That means that you may have to spend your hard earned money to repair a property you don't even own.  If for some reason that sale does not close, and it can happen, you have just spent your money to repair the Bank's Property.  Chances are they are not going to reimburse you for those costs they are going to smile and say Thanks so much for fixing my property.  Now I can sell it to someone else!  Does that sound like a good deal?  I don't think so.

Now, lets address Short Sales for a minute.  A Short Sale is defined as a property being offered at a price less than is currently owed on it.  Banks don't like Short Sales!  Why, who knows, but the general belief is that they actually make more money by forcing the homeowner in to foreclosure than by working anything out on a Short Sale.   

Another downside of a Short Sale for you the buyer is you may wait for months and months for an answer from the bank on your offer, only to find out that somewhere in the past they accepted another offer and yours was just disregarded entirely.  They won't tell you that though, so you will have waited endlessly for an answer that may never come.  While you were waiting however, another home down the street either hit the market or had a price reduction and it was the house you really wanted.  While you were waiting for some faceless nameless entity to get back to you, that house sold.  Are you going to be a happy camper?  I don't think so.

My point in this is to help you to understand that sometimes a foreclosure or a short sale can be a good deal.  Most times however if you can find a traditional seller and a home you like you will be better off.  As I stated earlier, sellers are motivated to sell these days.  They will work with you to make a sale happen.  If at all possible, you are better off as a buyer to try and find a home you like that is a regular retail seller, than to settle for the crumbs the banks are going to throw at you.  There are some really good buys in the marketplace these days and going traditional will ultimately serve your interests much better than trying to forge your way past a Bank. 

Good Luck in your Searches.  If we can be of assistance to you please give us a call.  I am confident we can help you find just what you are looking for.

---remember---

"WE WORK FOR YOU!"

SANDRA & BRUCE PAULOW, Your High Country REALTORS®