It is clear that this Florida short sale market is like no other. While it may seem that there are deals like never before, caveat emptor is the phrase that pays. For example, in regard to the purchase of short sales, many buyers are under the impression that these transactions yield the greatest return. The opposite may very well be true for several reasons:
Lori Crawford is a well respected Florida Realtor with an extraordinary reputation. She specializes in Pinellas and Pasco counties. Since I believe in the “boots on the ground perspective” for a dose of reality in today’s market place, I asked her to provide her state of the market assessment. Please welcome her as today’s guest blogger.
- A short sale price may initially appear competitive when weighed against other like-style homes, but in the time that it can take to close those deals, the price may not be commensurate with that future market.
- The home sellers going the traditional (non-short sale) route are competitively priced.
- The reasons that these sellers are going the traditional route are numerous and can drive the negotiation process in the buyer’s favor:
- Transition to an assisted living facility
- Relocating out of state for employment
- Attempting to avoid getting into a short sale situation
Buying the Bank Owned
A bank owned home may be carrying a lot of baggage. Between the potential for outstanding liens and clouds on the title, survey and easement issues, and new problem types that crop up with consistent regularity, the only thing you may be on track to purchase is a convoluted process and a good deal of frustration. These banks are also represented by law firms so the addendums and disclosures can favor the bank and sometimes put the buyer in a precarious position.
This Market Does Not an Investor Make
The other complication with these alleged “deals” is that they can make buyers feel they are sitting in the driver’s seat for investment opportunity. But if a buyer is a investment novice, then they need to work with an agent who specializes in investments and who can run the numbers to determine all sides of the equation to ensure the buyer comes out on the right side of the calculation. Additionally, educating oneself on the intricacies of these bank-owned and short sale transactions will provide a better idea of what the buyer is in for and what kind of time frame it will take to get to the closing table.
This can be a great buyers’ market for Florida Short Sales, but treading cautiously with a professional who specializes in the real estate that you seek is the only way to genuinely protect your interests.