Apr
18

Tips for Investing in Short Sales

Short sales can be a great investment whether you plan to rent out or flip the house you buy at a bargain. Buying a short sale can be profitable and can be safer than some other investments especially homes for sale in pasadena ca. Tips for getting a good deal are finding good banks with homes available, seeing the home first, examining the area and negotiating a great deal.

Find a Bank That Makes Timely Responses to Offers

Some banks are notorious for taking too long to respond to short sale offers. Other banks are notorious for responding quickly to short sale offers. Either way, the realtor will know which banks are best to deal with. In addition, your local bank branch will provide you with a list of short sale homes they have available. The short sale list is usually available through the bank manager.

See the House First

You may have seen pictures of the home that showed the home to be in good repair, but you can’t be positive of what may have happened to a home in the meantime. Some homeowners have gutted homes or some homes have been vandalized between the time of the pictures and the time of sale. It is important to examine the actual property to see what repair investment may be necessary in order to get the home ready for sale or rent.

Take Note of Comps in the Area

Comparable home sales in the area can give an idea of what the market value of the short sale may be after a little repair. It is important to find comps for the same area to see if homes are selling. The amount of the comps and how long they were on the market are also important.

Negotiate a Great Deal

A short sale is a situation that the bank and the homeowner must agree to the sale and the sale price. The bank is not in the business of owning homes, so they will agree to a good offer because they want to get rid of properties as soon as possible when the homeowner can’t sustain the mortgage. The actual homeowner is also usually interested in selling as soon as possible to get out from under the debt. This can result in a great deal to the investor.

Short sales can be lengthy, but are still a great investment if you find the perfect one. If you find the right property, the value you get can make it worth your wait. Short sales can be a really great value if they are in good shape and in a good location. A winning combination can lead to a really big pay off in the end.

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