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Buyers-Are you looking for the "deal of the decade"????? Is a short sale REALLY where you should look???

By
Real Estate Agent with Silvercreek Realty Group

Foreclosures and Short Sales MAY be a good place to start when looking for a great deal, but they certainly aren't the ONLY place to look.  At least in Idaho, many of these so called "deals"  are New Construction homes that were built 2 years ago when everything cost more (lots cost more, labor cost more, materials cost more) and they have just been sitting on the market for 2+ years waiting for someone to buy them.  There is usually a REASON those homes haven't sold! Have you seen "bargains" like this beauty? 

 

 

 

Some advertise "Reduced by $100,000!"  but the home was overpriced by $125,00 all along. Is that REALLY a good deal after all?  I don't think so!     

Don't settle for someone else's leftovers!  Many times, you can build a custom home with a reputable builder for the same price (or Better) as the Foreclosures and Short Sales! 

Visit me at www.DreamHomesinIdaho.com for virtual tours, lot information, market reports and more. Find out how you can build your dream home, for less than the "Bargains". 

Pam Pugmire

Your Meridian Idaho Custom Home specialist

Call or Text me for more information! 

208-921-4800

Visit my Idaho Real Estate blog and search for Idaho homes for sale 

Comments (17)

Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Pam, great point!  Just because it is a short sale doesn't make it a deal in any market!  Thanks for pointing that out!

May 16, 2008 06:08 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Great lesson Pam! I often have to educate my investors as well that "deals, short sales, and foreclosures" are not always the "best deals". Its just someone writing a real estate ad to capture attention, or like you said reducing overpriced property to current values.  

In my market area some of these "deals" are being marketed at fair market value. My clients can actually purchase a regular property instead of one of these so called "bargains" and come out with a better and more attractive property for the same price with a better appreciation rate because it isnt stigmatized as a previous short sale, foreclosure, or builder closeout deal.

May 16, 2008 06:13 PM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Cannons Thanks for visiting!  I had an Aunt who would buy ANYTHING if it was on sale......she ended up wasting a lot of money! 

May 16, 2008 06:13 PM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Michael  Great point!  The neighbors don't forget in 2 years that a certain home was a foreclosure!  That stigma can affect future re-sell values, especially if you are in a smaller market! 

May 16, 2008 06:17 PM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Thanks for stopping by David!  Yes, the lack of convenience should also be factored into the "cost" of a short sale! 

May 16, 2008 06:33 PM
Jolynne Photography, Creative Wedding Photography, Family Portraits, Bar Mitzvahs
Jolynne Photography - Hemet, CA
Bat Mitzvahs, Senior Pictures, Event Photography

A couple more things:

Often times the Realtor will advertise a short sale listing, but they haven't done all their homework and the bank hasn't approved that price. That can make for a tricky or even failed escrow.

Another deal I was the lender on (a foreclosure/bank-owned property) looked great when the appraisal came in over $20,000 over the listing. Great deal, eh? Only the various inspection revealed problems that would cost nearly that much to repair.

There are great deals out there, but it requires a goo buyers agent to represent your best interests. Thanks for posting this great info for Meridian Idaho real estate..and for all of us, too.

May 18, 2008 08:12 AM
Patti A. Puckett
Broker Associate/Realtor/ISA with Nouveau Riche - Belvidere, IL

GOSH; there is sosososo much homework to be done IF you have never participated in a short sale. Your point on new construction homes is valid, but remember THIS one point is a teeny,tiny needle on the PORCUPINE you refer to as a SHORT SALE!

It is a FABULOUS opportunity IF all the pieces to the puzzle fit together, the very FIRST piece of info one should be aware of is (what David mentioned) TIME; the length of TIME that COULD occur and cannot be predicated when beginning the process.

A Partner of mine and fellow community member has 70 short sales under contract; in order to be lucrative in short sales; it must be a numbers game.  Also referred to as a game of SIFTING. Statistics state that for 100 properties (considered) 10 will be viable,potential,profitable short sales (one where the numbers work from 1st and/or 2nd to 3rd mortgages and equity lines of credit, mechanics liens, tax debts through BPO's and Market Analyses, Offers the lendor will consider AND what the market will bear to re-sell it; or perhaps buy & hold?) 2 of the 10 MAY come to fruition.

Those numbers are not cast in stone and the better negotiater "one" becomes; the better your odds become.

There's just sosososo much to know and consider and every marketplace in every city,or town in America has a different TEMPERATURE, each individual TEMPERATURE needs to be researched and understood carefully before you begin working SHORT SALES...

"I'M JUST SAYIN'............!"  LOL

Thanks for letting me share

I had the pleasure of listening to a few VERY successful individuals (connected to me via OUR COMMUNITY) who hail from the GREAT STATE OF IDAHO--this past Saturday.  That was very cool, and so were they. I am looking forward to visiting Idaho for the first time in my life VERY SOON!

Hugs

Patti

May 19, 2008 04:46 PM
Rebecca Schrader
Competitive Insurance of Dundee - Dundee, FL

I've been buying these for years and it used to be easy money.  Now, I'm a landlord until prices rebound.

May 20, 2008 04:40 AM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Joey   Having a great buyers rep is a great way to get the info you need to make a smart decision!  Thanks for stopping by!

 Patti  Thanks for your insights!  There is some money to be made in short sales, you just need to be very patient, and sift through the masses.  Hope you can visit Idaho soon!

Rebecca, Holding now is a great strategy! 

May 21, 2008 02:11 AM
Kevin McGourty
Realty ONE Group - Phoenix, AZ

Good point on your blog. So tell me, being a long time resident of the Treasure Valley, you must be a Bronco fan. That Fiesta Bowl win a year ago was pretty amazing.

Business question -- How are your clients moving their belongings? 

1) What percentage would you guess are Do-It-Yourself people - rent a truck, move themselves?

2) What percentage would you guess use a full service moving van line?

Kevin

May 22, 2008 03:58 AM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Kevin Of course I  am a Bronco fan!!!Even before they were good!  The Fiesta Bowl was incredible-we watchedit on TV here in Meridian, but I wished we had gone down to Arizona! 

I would say that 95% of my clients are moving things themselves.  Probably the main factor in that is that most people I work with are moving to a new home within the Treasure Valley.  I'm sure the #'s go up significantly to people using a full service company when they are moving from out of state. 

Thanks for visiting my blog.

May 22, 2008 04:06 AM
Anonymous
Kevin

Well, you should be counting your lucky stars that the former Univ. of Idaho coach - Dennis Erickson - left to go my neck of the woods -- ASU.  Otherwise, he probably would have started another run of having Idaho beat BSU nine straight years again.  :)  (Actually, I am big fan of the Broncos even though I am a Vandal alum.)

Thank you for the info on how people are moving. Keep in mind that people don't have to move themselves. Best way to move -- rent a truck and then go to movinghelp.com and find helpers to load, unload, etc... nationwide. The cost for the average customer - $154. Can't beat it.

Kevin

May 22, 2008 04:15 AM
#13
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Kevin  That's a great price-I will have to remember that for my clients.  Way to bring up the nine year loss to Idaho!  The Vandals were very good in the '80s while I was attending BSU.  I'm sure the pendulum will swing and the rolls will reverse again in the future-in the mean time GO BRONCOS!!!

May 22, 2008 06:19 AM
Eugene Jones
Weichert Realtors - Somerville, NJ

Great post Pam! Just because a lucky few walk away with a good deal on a short sale or foreclosure doesn't mean most will. The fact of matter is that most will not. Like you say, there are plenty of other places to look for a great deal. That's why it's important to link up with an experienced Realtor that knows his/her market. Like someone such as yourself Pam!

May 25, 2008 02:32 AM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Eugene Thanks for stopping by!  You are so right! This type of market is so hard to navigate on your own!  With out the information that can be provided by an experienced agent, it is really hard to know what is a true bargain or not!  I know that you are very knowlegeable about your market as well, and would be a terrific resource for anyone looking to make some money from real estate investing in the New Jersey market! 

May 25, 2008 03:13 PM
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com

Many buyers are steering away from short sales until they have a better vision of the price the banks require to settle. Once that number is determined they (in my opinion) become a nice place to look.

Jul 30, 2008 10:51 AM