Blending REO and short sale properties, there’s a common consumer theme from our clients, “I want to buy a short sale bank or bank owned property!” While we can accomplish this, be aware that dealing with short sales requiring bank approval can be very disappointing for motivated Buyers and if you are in a 1031 exchange situation it can be even dicier due to identification and closing timelines involved.
A solid percentage of the time, the properties cannot be cleared from the short sale process quickly enough and move to the court house steps, typically becoming bank owned REO’s sometime in the future. Or, if there is a first and second on the property, Buyers may wait months with zero results or ability to purchase.
“Hot” REO properties require Buyers to pay cash, agree to a very quick close and are “as is.” Depending on client objectives, negotiating with a traditional Seller can deliver the same or better result to secure your Truckee-Tahoe property. The feeding frenzy of pursuing these properties can result in the Buyer actually paying more for the property with a much tighter timeframe for property investigation.
If you plan on pursuing this type of property purchase in lieu of a traditional buy/sell situation, it’s important to find the right agent with a successful track record, desirable product and one who will negotiate diligently. There’s a tremendous feeding frenzy that can occur with both short sales and REO’s that actually have the Buyer paying more for the property instead of less.
As a seasoned agent in REO property sales, I’ve received national designation as a Certified Distressed Property Expert combined with an excellent track with negotiating and closing these types of sales on both the listing and purchasing sides.
For more on REO and to learn if it’s a good fit based on your buying need, e-mail Alison Elder.
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