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Are short sales and REO’s (bank owned homes) better deals than regular sales?

Many home buyers in today’s market begin their home search by looking for deals on short sales and foreclosure properties, but are they really a better deal?

At the beginning of the real estate and financial crisis a few years ago, as short sales began to increase, many banks and lenders had no streamlined process to handle the nearly record quantities of short sales and foreclosures happening across the country. In many cases, the lenders took the real estate agent’s word as far as the sale price of the home. This led to many homes being sold too far below market value which led to more problems with the undervaluation of surrounding homes without taking into effect realistic fair market value.

Banks have since streamlined the process and have taken a more proactive approach to the valuation and pricing of short sale properties as well as foreclosures and Real Estate Owned (REO) properties. In most cases, a home that is listed as a short sale must still fall within reasonable fair market value based on the recent sales of similar properties. Any “deals” or homes for sale that fall far below market value are usually priced that way for a reason which may include severely deferred maintenance or physical damage to the home.

This does not mean that short sales or foreclosures still aren’t a great deal. If you have questions about short sale or foreclosure/REO properties for sale, feel free to begin your home search at http://bringingyouhomescv.com, or call us direct at 661-290-3802.

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