Should You Buy Foreclosures or Short Sales?

Should You Buy Foreclosures or Short Sales?

Where can I get the best deal?   The answer relies upon your priorities. We need to look at the both to get the best answer for you.    

We define foreclosures as bank-owned homes.  These homes were foreclosed and sold at auction on the courthouse steps.  Buying homes at the foreclosure auction is for experienced buyers only!

National Studies show that Foreclosures have sold at bigger discounts than short sales.  Foreclosures can close sooner and will offer the buyer a better chance to negotiate.  The downside is that foreclosures are usually vacant for months at a time and can cost more to renovate.

Many Short Sales are Move-In Ready.  Also, you help the homeowner and the neighborhood when buying a short sale.  The previous owner avoids the big hit to their credit rating and the neighborhood avoids another stigma.  The downside is that Short Sales may be denied and you may never get to the closing table.  Patience is also required with a short sale, as the bank can take months to schedule the closing or agree to your offer.

Do you still have questions?  For most people, foreclosures are the desired option.  A Foreclosure provides the quickest route to the closing table and you will pay less on average.

If you have plenty of time, and are looking for a turn-key purchase; then a short sale could be best for you.

 I always suggest that you obtain the guidance of Top Producing Agent that has experience with Foreclosures and Short Sales.  A great Realtor will make sure you understand the process and get the best price.