The real estate market can be unpredictable at times due to major fluctuations in the mortgage industry and the housing market. Buyers can often find some very good deals on homes that are sold well below market value. For instance, homes that have been foreclosed and taken over by banks are sold for low prices that can be considered to be tens of thousands of dollars under a home’s true value. Banks and other financial institutions essentially look for short sales with the hope of quickly finding buyers. Real estate agencies often work directly with banks and other property owners that have recently seized homes due to foreclosures. Community Best is an example of a real estate agency that specializes in selling homes below market value.
For buyers, a short sale is a dream come true when browsing local real estate markets. A short sale simply means that there is an urgent need for a house to be sold. The low price does not always reflect a poor condition of a home. The money that is used for short sales is often applied to cover any unpaid mortgage payments that haven’t been fulfilled by previous occupants of a home.
Short sale listings of homes and other residential properties can be found directly on the websites of real estate companies. Online listings have detailed information about all of the homes that are for sale. For example, potential buyers can look at detailed information such as total square feet, number of rooms, year built, types of climate control, garages, basements and any other relevant features. Additionally, the price per square foot can sometimes be displayed to highlight the extremely cheap deal of a short sale listing.
It’s important to realize that many short sale homes are quickly bought by investors that are seeking profits. Such investors can spend some money on minor renovations and list the home back on the market at a much higher price. Such a practice is sometimes called flipping a house. However, most buyers purchase a short sale home with the goal of eventually moving in and living there. It’s also important to realize that a short sale home is usually not negotiable. The low price is rarely dropped even if inspections find major damage and other unpleasant features in a home that’s for sale. Real estate agents also sacrifice their commission earnings from short sales of homes.