Bargain Home | California Current

Short sales are nothing new, but the current housing market has put these little gems at the top of every bargain hunters list. Thanks to dropping home prices in California and tighter lending guidelines, you can expect to find a handful of short sales within your area. But, buyer beware. Short sales are not for the faint of heart and can often become more troublesome than they are worth. If you are considering a home that is offered as a short sale, keep these helpful tips in mind.

Be Patient
In a short sale, lenders effectively sell the house below market value and take a loss on their loan. As a result, you can expect every decision to go through a series of supervisor approvals and various department oversights. Sellers are facing financial hardships and lenders are combing through these transactions with a fine tooth comb. There’s nothing certain about short sales - but be patient and your time could pay off.

Investigate
Short sales often result from home owners who either faced financial hardships or were just financially irresponsible. The last thing you want to do is to buy their problems along with the home. Check for unpaid taxes, liens, debts, and any cloud left on the title.

Invest in Success
With the recent popularity of short sales, there are a number of individuals trying to ride this wave as well. Make sure you find a Realtor who has proven success in the very different world of short-sale transactions. Don’t be afraid to simply ask them how many short sale transactions they have completed in the past year.

Find Value
Short sales are sales where lenders accept a purchase price below the amount due on the loan. However, this doesn’t automatically mean you will score a bargain. Actually, you might find many short sales available simply because home prices were so highly inflated in these past few years. Make sure you get a complete analysis of the market area as well as recent comparable sales. Sure, it may seem like a bargain since you’re paying less than the previous owner; but if market values don’t support the sale price, well then that’s no bargain at all.

Get Ready to Buy
If you are serious about finding a bargain, you’d better be serious about buying. In a short sale transaction, everyone is likely to be at the edge of their seats. Make sure you get properly financed and have the means of actually paying once you find this bargain deal. Again, time is of the essence and lenders will have no choice but to process the home into foreclosure if that time runs out.

There’s definitely a lot of action in the short sale market, and with the housing market where it stands - you can definitely expect to see more of these so called “bargains” popping up. Just remember though, short sales are not some super secret get rich quick real estate scheme. Like any transaction, do your research ahead of time before rushing into your new home.

(14 votes, average: 4.57 out of 5)

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With all the doom and gloom breaking headlines in every California news outlet, it may seem very intimidating to step foot into this current market. But while times are certainly tough, market trends seem to point that this may just be a trickier market to handle. By that, I mean people are still finding ways to buy new homes and even scooping up some great bargains at the same time. The only thing that is separating these folks from the “worried sheep” is their ability to adapt to this market.

So what does it take to succeed in this current housing slump? Well I’ve outlined a few specifics, but you’ll notice that nothing will ever beat the tried and proven art of simple preparation and diligent research.

Bring Your A-Game
If you want to get the best deals and pick up a great bargain home - you have to meet or beat the level of your competitors. In this market, the competitors, and the only true players in the game really, are the A-paper borrowers. Sure, people are still getting financed - but with subprime gone and Alt-A having a tough time, you had better make sure you are considered an A+ borrower. As well as saving up for a sizeable down payment, make sure to check out these tips that will make your credit worthiness shine in the eyes of lenders.

Beware of Bargains
Some of the best bargains in California can be found in short sales, foreclosure auctions, or other kinds of distressed sellers. But buyer beware, be careful not to let those emotions take over -take your time and find out as much as you can about the property, its community, and even its previous owners. There are a lot of great bargains out there to be found, you will just have to sift through some “trash” before finding your gem.

Aside from doing your own research, it may be worthwhile to gather your own team of trusted professionals to help you in your search. You should have already found a Realtor to help you, but you may also consider hiring a secondary appraiser to help. This appraiser will help you evaluate the home itself as well as the surrounding community to ensure the home values are consistent with what you are going to pay. In this market, you really want to make sure you are buying into the right neighborhood and avoid any duds that will just cause you headaches.

(6 votes, average: 4.83 out of 5)

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