The most asked about property in Sarasota real estate these days is the short sale.
Owners may be in financial trouble or not – the short sale simply indicates they are selling their home in a market that will not support what they owe on the home. Most people have been led to believe that the short sale is the best way to “steal” property, but that is not always the case.
In a market whose values have fallen so far, the banks are less and less likely to take a number significantly under market. As a matter of fact ,what most buyers do not realize is that the bank will appraise the property, and they know what it is worth in today’s market. Since they are already taking a loss from the original mortgage, they are more likely to stick to approximate market value; we have actually seen cases where short sales are priced OVER current market, but people assume it is a good deal.
Bank owned (REO) properties are often good deals, as the bank is not in the business of owning real estate. They would much rather collect money. So bank owned properties are often aggressively priced, but as of late we have noticed that they too are priced close to market value, not willing to give up too much ground. Bank owned properties often have a fair amount of deferred maintenance, so that has to be factored into the price as well. Although the margin of “steal” has gotten smaller, bank owned properties are still easier to purchase for a good price, generally speaking, than a short sale.
The final option is , of course, a traditional sale. And believe it or not, a traditional seller with equity is often your best bet for a great price. So when looking for property, don’t limit your search to short sales, or bank properties. Your dream home may be waiting with its owner still living in it; well maintained, well priced, and ready to go.