BUYING in Todays Market

As realtors, we constantly hear from our buyers, “We want the best deal out there”. To be honest, the “Best Deal” varies from buyer to buyer. There are many things to consider as far as deals are concerned and any time restraints on the buyer. The information below will help you determine where YOU as a BUYER should look for the “Best Deal”. To start your home search, log on to www.athomeintampabay.com


There are three distinct types of Sellers and each type of property they are selling has its own idiosyncrasies. Understanding them will help you in the process of trying to decide what is best for you and your particular needs. The three types are Bank Owned Properties often known as REO’s or foreclosures, Short Sales which are often referred to as pre-foreclosure properties and then there are the Typical Sellers who have their houses on the market because they have a need to move for all of the normal reasons that people move. Let’s take a look at all 3 and how they fit into your plans for a purchase.

Bank Owned Foreclosure Properties:

Price: These are often the best prices of any of the houses on the market for many reasons that will become apparent as you read further.

Condition: These are often properties that need a considerable amount of work due to the condition in which the previous Seller left them. Many of them need a great deal of cosmetic work, appliances, sometimes structural work, etc. which is why they usually carry a “bargain” price. Because these properties are sold as is, it is important that you plan to have the home inspected. In order to do this, you need to be prepared to pay to turn on utilities if necessary.

Offers: Your offering price, while it is important to the Bank, is not the only important factor. If you are a cash buyer, a buyer who is going for a small mortgage or you are willing to purchase the property “as is where is” (which is how most Bank owned properties are sold), your offer will carry more weight. At the time you submit an offer, you must submit a Pre Approval Letter stating that you are qualified financially to purchase this property or proof of funds for a cash involvement. You should also be aware that it may take the Bank quite some time to even look at your offer, more time to accept it in writing and that they may continue to seek other offers even after you have submitted yours. A quick answer to your offer will rarely happen.

Closings: If you need a quick closing and need to plan on an absolute date for closing, foreclosure properties may not be the answer for you. While these properties have certainly been known to go fast from the time of offer to closing, this is not something that you can count on as an absolute. If you are not under any particular time frame, then this won’t be an issue.

Pre-foreclosure Short Sales:

Price: These are properties that will be contingent upon a bank accepting your offer even after the seller has accepted and signed their agreement on the price. The bank will have to agree to a price that is usually less than what the original mortgage was. Often they are well priced or better priced than some other properties in the same market.

Condition: Goes from bad to excellent depending on how long the seller has been in financial difficulty. Your home inspection will help you determine what (if any) delayed maintenance there might be.

Your offer: Since your offer is contingent upon Bank approval just like the foreclosure properties, you should plan on submitting a pre-approval letter with your offer. Price is going to be important on this type of purchase since the bank will be discounting what is actually owed to them and the amount you plan to finance is important. The bank can be slow to answer even after the seller has agreed to your price as it is in their best interest to continue to shop for a better offer. A quick answer to your offer is often difficult to obtain.

Closings: This is similar to Bank owned foreclosures. Please see those comments above.

Seller Owned properties:

Price: While not usually the least expensive of what is on the market, they are usually fairly priced – just not priced as a distress sale might be.

Condition: The majority of these houses are in excellent condition and show well as these Sellers are competing with properties that are distress sales and priced under market value.

Your Offer: While these sellers usually have their houses priced according to the market, they are not in a position to play major negotiating games nor do they need to if they were priced fairly for the location and condition. If you are used to dealing with foreclosures and short sales and making low offers, you may find that this won’t work for you with these sellers. These sellers may request a pre -approval letter with your offer as well due to the mortgage issues that have arisen in this market correction. For many obvious reasons they don’t want to take their property off the market if you do not qualify for a mortgage to purchase their house. Some of these houses are sold as is, but many sellers are willing to make repairs that the buyer feels are important that are covered by the language of the contract.

Closings: This is where you can usually be in the driver’s seat. If you have specific needs to close quickly and on time. Seller’s who are competing with distress sales can make up some of that difference by allowing the buyer to determine how fast they want to close

Information offered by Julie Park and Simon Swain, Realtors; Prudential Tropical Realty

http://www.athomeintampabay.com/