There is undoubtedly a huge market these days for distressed properties and if you have been paying attention to various news shows and listening to Real Estate professionals, you know that there is another huge wave of distressed properties out there that haven't even hi the market yet...but they will, just wait and see. You may be asking yourself, "what is a distressed property anyway and why or how does it affect me"? Well, a distressed property is any property that is in danger of being foreclosed upon and there are many properties that are in various stages of the pre-foreclosure or foreclosure process. In the pre-foreclosure stage, a distressed property is commonly known as a "short sale".
As far as the effect of distressed properties on buyers and sellers it's easy to explain. If you're selling in today's market and your area is flooded with distressed properties, your properties value is being affected and it's not in a good way either. If you are a buyer looking in this arena then you could be about to find an unbelievable deal and actually walk into a new home with equity which is not all that common these days of declining values. If you are a seller facing foreclosure please know that you don't have to settle for the damaging effects of a foreclosure. You have options and you should explore those options. For more info on short sales please log on to www.PensacolaShortSales911.com.
For instance, did you know that in the case of a short sale sellers can use the services of a professional Realtor without having to pay for some of the typical fees associated with a Real Estate transaction. That's right, most lenders will pay certain fees such as Real Estate professional fee, title insurance and doc stamps on the deed. One word of advice to anyone considering a short sale...many real estate agents claim to be "short sale experts" but few carry the Certified Distressed Property Expert designation. This designation is earned by attending 16+ hours of training and properly qualifies certain Realtors to handle short sales correctly. Make sure you hire a CDPE to handle your short sale. Hiring the right Realtor to negotiate a short sale is the most vital component of a short sale.
Now as far as buyers go, you must ask yourself one question...."is this distressed property the best deal or the best value"? Often times the best deal does not equate to the best value. Also, ask your lender about a 203K loan which allows you to wrap up to $35,000 into your mortgage for upggrades and repairs that may need to be done with a distressed property. Log on to www.PensacolaHomeSite.com for more information. Currently in our local market there are over 700 distressed properties up for sale which is about 13% of all active listings. There is still a huge wave of adjustable rate mortgages (ARM's) out there that are getting ready to re-set and when they do, the flood gates will once again open.
Many people shy away from short sales including buyers and their real estate agents. As a CDPE, I can guarantee you that if you are patient and if you have the right Realtor, a short sale will not be the painful process that most make it out to be.