Explanation of a Short Sale
Thanks to Cindy for keeping us informed on short sales.
Today, there are 683 active homes for sale in Carmel Indiana and 5% of 33 of those are short sales. Whilte this is not a huge amount in terms of percentage, it is one of the more sought after type of homes in the market. Many buyers or investors are looking for a deal and short sales sometimes can be that deal.
The "short" explanation for a short sale is a property that is going to sell for less than the amount owed on the property. In other words, the bank is willing to accept less than the full balance due and will usually forgive the difference.
Another explanation would be to say the current owner has negative equity. The amount the home sells for is less than the amount owed so it is negative equity.
The question I commonly get is are short sales a bargain? As with most professionals when faced with a difficult question, the response is, "it depends". It depends on whether the seller/owner has one mortgage or two. It depends on how long the home as been on the market. It depends on who has the mortgage. It depends on a variety of variables. But, that being said you can expect to get the home for less than it is worth.
What you can also expect is repairs and maintenance items. When you think about it, the seller/owner is behind on their payments, they probably didn't have excess funds for repair items. So typically there will be some sweat equity involved.
I have sold several bank owned homes in 2009 and they were all great examples of great deals and less than 50% of those I sold needed nothing more than carpet and paint and maybe an appliance or two.
If you'd like to receive bank owned homes or short sale homes available in Carmel Indiana, please send me an email. I can create a search in minutes and any new listings that meet those criteria will pop in your inbox the day it goes on the market, giving you the best opportunity to take advantage of the deal!
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Cindy "in Indy" Marchant - Carmel Real Estate Agent
Keller Williams Realty Indy Metro NE
Carmel IN Real Estate Website
317-290-7775
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