Where are the Deals and Steals in Frederick Real Estate? They are in Short Sales and Foreclosures. Foreclosures tend to sell about 15% below market and short sales go for about 10% below market value. These “distressed sales” make up about 20% of the listings in Frederick, and about 25% of the sales each month.
Short Sale vs. Foreclosure
So what is the difference between buying a short sale or a foreclosure? Briefly, foreclosures are already bank-owned and the buyer will be negotiating with the bank. The negotiations usually take 1 to 3 days, like a traditional sale. The sale price is usually lower than the price of a short sale. The home is vacant, and probably has been for a while in today’s market. With vacant homes we usually see more damage due to vacancy. Sometimes the type of repairs make the house ineligable for FHA financing. We also see condo’s that are ineligable because so many condo dues are in arrears.
With a short sale, the home is lived in until close to the time of settlement, so the home tends to be in better condition, without the problems that come with vacancy, at least. The main drawback to purchasing a short sale is the time it takes to complete the transaction, usually between 3 and 6 months, and the lack of clarity along the way. The lender(s) have to be notified of the offer and give their approval (third-party approval). If there are multiple lenders involved, this can take time.
Short Sale Tips
If the buyer has the patience and ability to have a flexible moving date, a short sales purchase can be a great value. You can generally find a home in fairly good condition for under market value. The upgrades and repairs can often be minimal.
The short sale transaction can go a lot smoother if the agents involved, both buyer and seller agents, are trained and experienced. There are a few national certifications that equip agents to deal with the demanding details and specialties of short sales. CDPE, Certified Distressed Property Experts, is one. Chris Highland is a CDPE and has experience with short sales.
Use our MLS Search to search Short Sales in Frederick Md.
Use our MLS Search to search for Foreclosures in Frederick Md.
To see homes on the market, use our free MLS search, or contact us for information about the Frederick Real Estate Market or the Montgomery County Real Estate Market.
The Highland Group - Real Estate Teams
Chris & Karen Highland
Frederick County MD Real Estate Agents
301-831-9947
Real Estate Teams, LLC
isell4u2@msn.com
Text Us: 301-401-5119
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