Buy a House Fast

What I need to know before I go home-shopping

People are sometimes concerned that they can only afford foreclosed or short-sale houses. It worries them that they won’t be able to move into their new home immediately, and can do so only after considerable renovations. Is that true? Read on to know more…

Myth 4
Foreclosures and short-sales are a bad investment.  I’ll have to spend through the nose to fix up the place and make it livable!

Fact
Maybe, Maybe Not.

If you’re already looking for a house, you’ve probably noticed that there is no dearth of short-sales & foreclosed houses on the market. In general, most houses that are listed as bank-owned properties often need a face-lift. As unfortunate as it is, people who’ve lost their homes to a foreclosure, may have done extensive damages to the place. There have been cases where houses were missing basic fixtures like carpet, air conditioning, major appliances and even cabinets.

With a short-sale, you need to be a more informed buyer and do your homework and account for the house’s condition before you sign the deal.

Having said that, not all REO properties are distressed. The truth is that more than half of the houses listed are move-in ready, and are usually sold at the current market value. Renovating a foreclosed home/Real Estate Owned (REO) property becomes an added cost for the bank that owns it. However, that doesn’t stop them from touching up the basics in order to make the house ‘saleable.’
Again though, sometimes banks leave it ‘as-is,’ because there is a demand to buy some of these properties at a much cheaper rate, which can work as an asset in the long run. Then again, does this seem like an exciting deal?

What can I do?
Well, if you are buying a house listed through Express Realty Services, you can be sure the property has been accurately inventoried for any damage or missing items. We also work closely with the lending banks to assure that the condition of the house matches the exact description in our listing so that there are as few surprises as possible. We are experts at caring for and selling bank owned properties – we sell more than 300 a year. Just call Express Realty Services at 1-888-306-9450, and get ready to pack all those suitcases, right away!

Want to dispel more myths? Check out the other blogs in this series: Myth 1; Myth 2; Myth 3

Selling a home at short sale is a viable way to avoid foreclosure.  For a prospective home owner, buying a home sold at short sale can be a great way to find a place where the price is right and the home is in reasonably good shape.  With a short sale, the seller, with bank approval, offers the home at a competitive fair market rate that is less than the mortgage balance.  Because the seller still lives there and regards it as home, the home is more likely to be in livable condition as compared to bank owned homes that may be gutted and trashed by angry owners on the way out.  If the seller is having financial problems culminating in a short sale to avoid foreclosure, the home may need some work and lack the last-minute fix up efforts sellers usually perform before listing their homes.

Why Short Sales Are a Long Story

To date, the biggest problem with trying to buy a short sale home is the long wait to close; not the quickest way to sell your house fast.  The seller and his agent must get bank approval of the specific terms of the sale, a very lengthy process.  Sometimes after months, the lender nixes the transaction which leaves the weary buyer without the home he wants and the seller frustrated and deeper in debt!

Short sales are seen by many real estate experts as the best way to alleviate the current housing crisis.  Lenders have been reluctant to embrace the concept, although it can save thousands of dollars ($50-60,000 by some estimates) as compared to foreclosure.  In any case, they are often understaffed to handle the current and anticipated demand for short sales.  When the large pile of documentation required for a short sale is put in their hands, the real estate agent or the seller embark on weeks or months of persistent calling to help move the paperwork through the process.

New Hope for Short Sales

There is some hope these days that the process will be shortened.  As part of Obama’s Making Home Affordable program, the Treasury Department is on the verge of issuing new directives to promote short sales.  Mortgage servicers will be eligible for $1,000 to compensate for the extra work, while sellers will receive a $1,500 incentive to pursue a short sale, leave the home quickly, and leave it in good condition.  The incentives will not reach the lenders or mortgage investors who are holding up the deals, so skillful negotiation will remain the key to success.  Ideally though, the incentives are intended to encourage cooperation between real estate agents and lenders to move housing inventory more quickly.  The new Treasury rules will also cover deed-in-lieu transactions where the homeowner turns the home over to the bank before foreclosure.

The Short Sale Alternative

As is it is now, short sales work best for potential buyers with time on their hands.  If you are a seller and contemplating a short sale, contact Express Realty Services. We have a fully staffed, professional short-sale department with tons of experience negotiating successfully with banks and lending institutions.

Options, Alternatives and Great Ideas

Thinking of buying a short sale? Check out Express Realty Services. Not only do we have short sale properties to show you, but we also specialize in selling homes quickly. We offer short-sales, bank-owned and many newly renovated homes in move-in condition.  In fact, over the past year, we have sold more than 100 homes in fewer than 40 days, beating the DC Metro market by almost 300%.

Wondering if this is good time to buy a house? Our Monthly Market Update pulls together all the current statistics to encourage you to take advantage of the $8,000 Home Buyers Credit if you are a first-time buyer and act quickly before this credit expires.