Phoenix Real Estate Questions From A Canadian Buyer, Part 3

What are the benefits?

Short Sale

Short Sales are usually advertised at a low price.

Bank Foreclosures, or Bank Owned Property

Bank Foreclosures, or Bank Owned Property are usually sold at prices below the current market value.  Banks will generally respond quickly to a purchase contract.  Some bank are willing to pay the buyers closing costs as well.

Property Owner

When buying buying real estate from a property owner who is desperate to sell a benefit is that they may react emotionally and sell for less than market value.

What are the drawbacks?

Short Sale drawbacks?

In a typical Short Sale once you have submitted a purchase contract to the bank it will take six weeks for the bank to respond to your real estate offer.  When they do respond to your offer to buy they may counter at above list price, or tell you that they have decided not to sell the property as a Short Sale (remember this is after waiting six weeks to hear from them).  In a Short Sale you will have to buy the property in "as is" condition, meaning the bank will not make any repairs.

Bank Foreclosure or Bank Owned Property.

When buying a bank owned property the drawback is that it is being sold in "as is" condition.

Home Owner

When buying a home from the home owner the drawback is that the home owner may have a unrealistic or irrational idea as to the value of their home.

I hope this information has been helpful in clearing up the differences between a Short Sale, Bank Foreclosure, and buying from the property owner!  Please contact me if you are looking to buy real estate in the Phoenix Valley!