A Queen Creek property that may have been worth $300,000 would easily sell for $150,000 in today’s market. Many properties are in financial distress condition – foreclosure, pre-foreclosure or short sale. How can you get a great deal on properties while helping sellers with their financial situation?
Why Short Sales Are a Win / Win
A short sale is a last resort for when a homeowner simply cannot make their payments anymore. The alternative is foreclosure and destruction of their credit. All the money from the short sale goes to the bank. The bank wins as well, because instead of having to pay for a foreclosure, they save money.
Some estimate that on average, banks save 20% more on short sales than on having to foreclose. In other words, although you’re getting a great deal, you’re helping out both the seller and the bank by conducting a short sale.
How Much Money Could You Save?
Generally, 15% to 35% of the market value of the house. The median sale price in Queen Creek, AZ as of mid 2010 is around $130,000 – meaning you could save $19,000 to $45,000, perhaps more or less depending on the individual pricing of the property. Keep in mind that you should also factor in any property liens or repair costs to your estimates as these will be coming out of your pocket, not the seller or the banks. Finally, remember to also factor in selling costs: Closing fees, taxes, documentation fees, escrow, etc.
Find an Agent Who Knows Queen Creek
I cannot emphasize how big a difference having a good agent can make in the short sale process. There are many factors in a short sale that your average agent simply won’t know to expect. It’s important also to find an agent who specializes in the Queen Creek area. They’ll know the homes, the lenders and will be able to provide crucial advice that only someone who’s experienced locally can provide.
Pay for a Home Inspection
Some buyers are tempted to skimp on the home inspection. In a traditional home purchase, this is already a bad idea. In a short sale, this is a very bad idea.
It’s not uncommon to hear about buyers who bought a short sale only to later find that it had structural problems or pest infestation. Don’t let this happen to you! Protect your investment – yes, you’re paying a few hundred dollars out of pocket. That beats paying six figures for a dud.
How to Get Started
If the prospect of saving 15% to 35% on your purchase sounds appealing, then now’s the time to get started on the process.
Step one is to decide on your criteria for purchasing a short sale. What price range are you looking for? What neighborhood, what condition, how many square feet, etc. Once you have your criteria, talk to an experienced Queen Creek short sale agent who can help you with the process.
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