My New Blog

Most people I talk to believe foreclosures are the better bargain. The truth is, you may get a good deal on any transaction (foreclosure, short sale or traditional sale). It simply depends on the situation. If Mr. & Mrs. Homeowner just got offered a job out of town and are eager to move, you may get the best deal on a traditional sale. If the bank is overloaded with properties in a particular area, you may get the best deal on a short sale—with the bank fearful of taking on one more property in that area.

So have I wimped out on the question? Not at all. Given the general rule (you can get a great deal on any transaction), in my experience you are most likely to get the best deal on a short sale. If you can muster the patience (3 – 5 months is not atypical) you just might secure an excellent deal both in terms of pricing, information and risk. So while foreclosures may be reputed to be the best deals, short sales may be where the basement bargains really exist.

While foreclosures have their advantages (quick answer, sure thing), short sales have their advantages, too. Often short sales have a seller who is still around and can tell you the history of the property. You will be told if the bathroom flooded last spring or if the neighbor is a nuisance. In a foreclosure, the previous homeowner has the left the property and you have limited information. Less information (less disclosures) means you take on a bit more risk with a foreclosure.

So my advice? Consider all types of sales. Know the risks associated with foreclosures, the extended time involved in short sales and the benefits of a traditional sale and then shop for the best deal you can get!

If you have any real estate questions, please do not hesitate to call or email me.

Melinda (714) 863-5485 / johnsonlaw@sbcglobal.net