Buying distressed property has its pitfalls, in my experience many people often don’t understand the difference between this scenario and a regular sale.
As you know, with a typical real estate sale (non-distressed) you have to deal with the seller’s personality, their belief that their home is worth more money than what it actually is. The normal things that you would think about if you were selling your own house do not necessarily apply in a distressed sale situation. With a normal sale you simply make an offer which the seller will either counter or accept. In a distressed situation that generally doesn’t apply because a third party is deeply involved.
You should be aware that there are two types of distressed properties, Short Sales, and Foreclosures.
In the case of a short sale, the seller is the owner of the property. The short sale process can be short or it can be long, it largely depends on who the third party is (Local vs. National Banks etc). The process is much more stream lined than it has been in the past. Typically the best deals are short sales, this is mainly due to the fact that bank doesn’t want to foreclose on the property therefore they are willing to sell it short of what is owed. In my negotiations for buyers, I have found that this is the best type of distressed property to purchase. In many case with the seller still occupying the property, it is going to be better maintained than a home that the bank has foreclosed on.
The other type of distressed sale is the one people read the most about, and believe they are going to get the best deal, which is a foreclosure; however once the bank has taken the property, the banks desire to negotiate has been minimalized because they have taken on the expense of foreclosing on the property, it is a very common misconception that you can get a steal on a foreclosed property from a bank. That may be true in other parts of the country where there have been massive amounts for foreclosures such as Arizona & Florida. That is not true in the dealings I have had in the Charleston area market.
I believe it is important when purchasing distress property to have your own representation because the sellers agent is representing the banks interest, not yours. My services as a buyers agent do not cost you anything, and the insights that I can share with you can help you navigate the most expensive purchase you are ever likely to make, your home.
For the sake of space, and time, I recommend you call me at (843) 345-6074 to discuss your individual needs.
