North Dallas 'Burbs Real Estate Talk

There is a lot of attention on short sale and foreclosure properties because they have become so prevalent. Any many buyers believe this is the best way to “get a deal”; and it is… but for the right buyers.

What does the “right buyer” profile look like? For a short-sale, it’s someone that does not have tight time restraints as a short-sale can be a frustrating and drawn-out process. It can take weeks or even months just to find out if the bank accepted the terms of your offer. However, some listing agents have done the preliminary paperwork ahead of time, which will alleviate some of the wait. Many banks are so inundated with requests that their backlog is substantial. They simply don’t have enough staff to accommodate the number of requests. Many banks are trying to streamline their systems to provide a more efficient way to handle the demand. But if purchasing a home for under market value is your goal and you have some time and patience, this could be a good way to go.

On a foreclosure (or REO) purchase on the other hand, the closing can happen fairly quickly. However, a foreclosure comes with a different set of potential concerns like property condition. When you purchase a foreclosed home, you are purchasing “as-is”. You can still perform a thorough inspection, but you will be responsible for repairs yourself. The bank will provide for an option period in which to complete your inspections, and you can normally back out if you find something undesirable. There can be stiff competition for homes in the best location, the best condition, and the best value so don’t get overly attached. The bank will review all offers and choose the highest and best out of the bunch. Be sure to calculate repair and improvement costs into your budget. Is it still a good deal? Are kitchen appliances and lighting fixtures missing? Are you prepared to be out-of-pocket to get the house move-in ready? Or does it make more sense to purchase a home that has been well maintained, move-in ready and fiance it over 30 years? Note; If you plan on financing a foreclosed property via a FHA loan, the home must be inhabitable with all systems functioning in order to close.

Then there is the courthouse steps auction. This is the step in between default and REO. If you are not an experienced investor or very knowledgeable about the process, don’t do it. This is not for the first-time home buyer.

Have questions? Need guidance? Would you like a list of short-sale or foreclosed properties available for purchase in the North Dallas suburban area? Please contact me at (972) 898-4832. Or search the MLS  and use the “foreclosure” or “short sale” filter available.

Search the North Texas MLS with Foreclosure & Short Sale Filter