Distress Sales are a Great Source for a Vero Beach Bargain Home Purchase
I can be argued that anyone who has their home on the market now is a motivated seller. Why don’t they just wait a while for home prices to recover and avoid losing their equity? Many reasons actually:
-Death, Divorce, Job loss, Health Issues etc…… -Relocating and don’t want to manage a rental from afar -An Opportunity elsewhere – loses here, gain there
Whatever the reason, it creates an opportunity for the Vero Beach home buyer. Many potential home buyers do not want to deal with some of the issues that can arise when a home must be sold as a “Short Sale or is a foreclosure:
- Lengthy response times from the lender to a purchase offer – Deferred maintenance because of the seller’s financial situation – The need to make repairs, some of which can make financing difficult
By carefully analyzing the time on the market, prior sales history, comparable sales and current value, these bargain homes can be found. Buyers who limit themselves to just foreclosures or short sales are missing a good portion of the current market of distressed home sales in Vero Beach.
Many buyers today are not realistic about the price they will pay for a home. Perhaps they watch too many late night TV infomercials claiming you can buy homes for a few thousand dollars. The lowest price is often determined by the potential cash flow to an investor. The recent sales increase in 3/2 homes under $100k has been driven by investor purchasers seeking a decent return on their investment.
There is also a common misconception that lenders will do anything to avid a costly foreclosure situation. The truth is that they are partially insured against some losses and will write off others. They have a very good idea of current value from their selling agents and price accordingly. Lenders are motivated to sell quickly, since they must stay below a predetermined ratio of good to bad debt, but are still targeting close to value.
Whether a home is a distressed sale, short sale or foreclosure, an informed and prepared buyer will always get the best deal! Studying the market, analyzing specific properties and pre-qualifying with your lender are critical components.
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