Want To Buy A Short Sale In The Phoenix Valley? Know This First!
A few days ago I was talking to a client of mine who lives in Seattle, WA. He is a real estate investor and is buying rental properties in the Phoenix Valley.
He and I were talking about short sales because there are so many of them happening right now in Arizona, specifically the Phoenix Valley.
There are good and bad things about making a real estate purchase through a short sale. The good part is the most obvious...which is at times a short sale can allow you to buy real estate in the Phoenix Valley at a great price.
The short falls of a short sale are not as obvious upfront, but let me tell you what some of them are.
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It is easy to be out bid in a short sale. Once you have written a real estate contract to buy a short sale and have given it to the Seller's agent...it will still take 2-6 weeks for the bank to respond to your offer. During that time period home can still be marketed as an active listing and can accept other offers. Frequently buyers will submit a real estate purchase contract and wait 4-6 weeks just to find out that someone else wrote a contract for a few thousand dollars more.
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Just because a house is being marketed as a short sale...does not mean the bank will sell it as a short sale. In a short sale ultimately the sale price of the home and the type of sale will be determined by the bank that owns it. You as the buyer could write a contract on a short sale property and wait 6 weeks just to find out that the bank is not going to sell it as a short sale.
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The list price of a short sale can just be a teaser. Just like in an auction sometimes the list price on a short sale in the Phoenix Valley is now where near that the bank will allow it to be sold for. The list price may be $125,000, but the "reserve" price that the bank has in mind is $150,000.
When you buy a short sale in the Phoenix Valley you can get a great price on your home of real estate investment. However, if timing is at all important to you...you should avoid short sales!
The best tip I can give you if you want to buy a short sale successfully in the Phoenix Valley is to think like a bank. When a bank agrees to sell a property through a short sale it is because they believe that they will loose less money by selling it short...than they will if they foreclose on it. Making an offer of $150,000 on a home in the Phoenix Valley that has a short sale list price of $600,000 is a waste of time.
Remember THINK LIKE A BANK! A bank is going to have a price point on a spread sheet and if they determine that a short sale will net them more money, they will sell the home in a short sale. If it is not going to net them more money than a foreclosure...they will foreclose on the home!
If you are looking for a home to buy in the Phoenix Valley contact me! 
Date: Friday, February, 22nd 2008 @ 09:04:56 AM Views: 492
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