Many people call me to inquire about bank owned properties. Their belief is that a bank owned property (or maybe a short sale) is the best deal. In many cases, this is true. But this article, which will be part of a series, will help to better educated you on distressed properties.
To me, a distressed property is any property that is selling below current market value (many times significantly below market) due to a number of factors. Distressed properties may include bank-owned foreclosures, short sales or a traditional listing (meaning no third party, such as a bank, yet involved) with an extremely motivated seller. Seller motivation may include trying to compete with the bank owned and short sales, wanting to sell quickly to purchase another property or contending with the early stages of distress and being unable to keep up with mortgage payments. If they can’t prove hardship, these motivated sellers may be coming out of pocket with cash to keep a deal together. I have seen this plenty in the last 3 years! In addition to giving my clients tools to do their own research – see article in this newsletter entitled new web research tools for clients – I follow the distressed market closely. On a daily basis, I scan all new listings including new to market and price reductions. In addition, l specifically follow all bank owned listings for new listings and price reductions. Once I have a match with a current client’s parameters, it can be a real dog fight. Well priced distressed properties can go under contract in less than 2 – 3 days for more than their asking price. You need to move quickly on the good ones.
Tim Hart
Cell Phone: 406-570-5730
Office Phone: 406-5567188
Email: TimHartRealEstate.net
Website: AtHomeInBozeman.com
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