Have you ever wondered if going after a short sale or a property in foreclosure is worth the time and hassle? You’ve probably heard stories of “amazing deals” on these kind of properties, but really — is it a good investment? Local realtors say you need more than money — you need lots of patience, time, smarts, and expert advice.
Adriana O’Toole admits the values are somtimes great for the buyer – there are usually no inspection issues addressed, it’s “as is is as is.” “But the buying process takes a long time and can be very frustrating. It’s not for a buyer who needs quick occupancy or has no patience.”
“If you’re considering an investment property, investors have to have a lot of cash around to fix things up and re-list or get ready to rent and this is not really the market for that,” says O’Toole.
Several realtors advised working with an agent who is certified in this specialty and and a good lawyer with experience managing these types of transactions.
Roberta Baldwin adds “short sales can be exasperating and endless. Many of them do not close. Once the owner has signed off on the sale, the contract goes to the bank for approval, and that could take months, and then be rejected outright. The lender often doesn’t even own the property outright, having sold it to an “investor,” at some point, so that entity also has to weight in.”
Foreclosures, which are “bank owned,” tend to go faster, because the bank actually wants to get rid of it, but these deals, too, are pretty difficult.
“In my opinion, it’s a grueling way to buy a house, even when money is saved, and the buyer really needs to be committed the the property — and patient. The agent, meanwhile, really needs to know how to handle the silences with the bank and how to keep lines of communication open with the buyer — or all the hard work is for naught,” says Baldwin.
Want to learn more? Find out how to get into this risky segment of the recession-fueled market, and if it’s for you, Tuesday night, June 29, at a free seminar hosted by Bloomfield Public Library. Details, after the jump.
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