Why is now the time to buy a short sale on Long Island? From all the research I have done, you should see two trends happening in the housing market for 2009: prices falling by at least another 10 percent due to discounted sales, such as foreclosures, and sales are going to increase dramatically.
In December 2008, the overall median closing price for Long Island and Queens went down by more than 10 percent from the same time a year earlier, dropping from $425,000 to $381,800, according to the Long Island MLS, which also covers Queens.
If you are a first time home buyer or a potential investor, this would be a good time to learn how to buy a short sale home. These homes can be purchased for much less money than typical home sales where the property is not owned by a bank or the home owners are not upside down in the home. That particular term, upside down, means that the owners owe more on the mortgage than the home is worth. When you buy a short sale, you are buying it for the mortgage amount, and sometimes less, instead of the original purchase price. These short sale homes are often better investments than foreclosed homes because the owners still live in them, the yards are being maintained, and quite possibly, the interiors do not need much repair or remodeling. The short sale vs. foreclosure home is likely to be lived in and well taken care of.
A foreclosed home can have major maintenance issues, inside and out, so in many ways, the best investments are the short sale homes. I've heard from real estate agents who say that some people who leave their homes in a foreclosure situation do not clean them; they sometimes trash the flooring and walls, and remove appliances, and anything of real value.
People selling short sale homes owe more on the mortgage than the home is worth, and rather than go through the foreclosure process, the bank has agreed to sell the home for market value or even less. It's a good way for people to get that mortgage off their backs, and the lenders like it too, because they don't have to carry the home as an asset while they try to sell it. There are short sale specialists that know how to manage the sale of these homes, coordinating bids from buyers and working with the banks. If you are interested in purchasing a short sale home or have questions about the process, please don't hesitate to call us as short sales are all we do. GHH Realty is conveniently located in Melville, NY. Call us today at 516-620-2511 or visit us at http://www.ghhrealestate.com