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Short Sales, Bank Own and Auctions...Which Is The Best Choice?

By Netta Blackwood

Real Estate Agent with La Rosa Realty

April 16, 2008 10:11 PM

Your guess is as good as mine. But here in the Central Florida area, these are some of the choices that the average buyer can choose from. In addition to the average sellers trying to sell their homes.

But which choice is the best one? It would boil down the the property, the condition and the cost of repairs needed. It would also comes down to how much that buyer really need that property.

To some buyers, they feel that the best choice is at the auction, while for others - the choice would be bank own or short sales. Sometimes, it all depends on who is on the other end of the transaction.

Here is Central Florida area, sometimes it takes much longer for a short sale transaction to close - some realtors states that in as much as 2 months. The typical comments on a bank owned property is 'this is not a short sale' their reason for doing this is not to have their property been overlooked by potential buyers and realtors.

Overall, in todays market, there are many good deals out there and one must be ready and willing to negotiate in addition to having patience.

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Gary McAdams

GMAC Schwartz Property Sales - Key West, FL

All three are tough but I like bank owned the best. I will not show a short sale. The banks are just too dificult to deal with and too slow to respond.

Apr 16, 2008 10:46 PM

Netta Blackwood

La Rosa Realty - Kissimmee, FL

REO/BPO Expert

That's the problem that we are having in the market here. But we are seeing a strong increase in the auction industry here as well.

Apr 16, 2008 10:48 PM

John MacArthur

Century 21 Redwood - Washington, DC

Licensed Maryland/DC Realtor, Metro DC Homes

Netta - Our auctions occur on the courthouse steps and the hoops to go through make it rather difficult to participate. The short sale homes are a "crap shoot". There are no rules or regulations regarding how they are listed. Some may be available but most of them appear in the MLS long before the bank/lender is aware that the home is for sale. Bank owned property, when discovered is a much easier process.

We all toss around the word patience. At some point, we need to replace that word. It does not give justice to the length of time it may take to complete the transaction. Buyers do have time constraints in most cases. Entering into a short sale process my take longer than the notice given a landlord. It may take longer than the relocation period allowed. There are many downsides to short sales, the first being including the term sale in the title. They are not short sales per se, no, they are "last hope attempts".

Many are in disgusting condition. We use the excuse that the former owners were frustrated that they were losing their house. We accept that they must have been financially strapped. We overlook all complicity on the sellers part. We seem to forget that they are not paying any mortgage payment and they probably could afford a few bucks to have the home cleaned when leaving. We seem to forget that their obvious disregard for the condition of the property is a clue as to why they are in the situation they are in.

We read stories of pets left behind. Then we try to make nice and sell the home to take the person off the hook. Agents involved in most of the short sales don't understand them. They see their name on many listings and hope that if enough are on the market one will sell. The fear of "would you like fries with that" is a terrific motivator to do anything to create a transaction.

Apr 16, 2008 11:01 PM

Anonymous

Netta

Here in Florida we do not have that problem John, there are way too many listings. Sometimes properties goes unsold at the auction too as well.

Apr 17, 2008 10:25 AM

Short Sales, Bank Own and Auctions...Which Is The Best Choice?

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