Where are the Deals in Frederick Real Estate?
There are some great deals in the Frederick real estate market right now. Buyers will find some great houses for under market value… if they are patient. I’m talking about short sales. A short sale is when the homeowner faces a financial hardship and negotiates with their lender to sell the home “short” of what they owe on it.
As of today, there are 237 short sales on the market in Frederick County, and 83 foreclosures. These “distressed properties” make up about 20% of the real estate listings, while every month, they make up about 25% to 30% of the sales.
What's the Difference Between a Short Sale and A Foreclosure?
Foreclosures are already owned by the bank and the buyer will be negotiating with the bank. The negotiations usually take 1 to 3 days, like a traditional sale, although, sometimes longer, when there are multiple offers. The sale price is usually lower than the price of a short sale. The home is vacant, and in today’s market, it could have been vacant for as much as 2 years. With vacant homes there’s usually more damage due to lack of occupancy. Often the utilities are turned off, and pipes can freeze during the winter; the pipes burst... basements flood, mold creeps in.
With a short sale, the home is occupied until close to the time of settlement, and even though the home might have some lack of upkeep, it will usually be in better condition, without the problems that come with vacancy, at least. The sale price of a short sale is usually below market value, anywhere from 10% to 30%, but usually not as low as a foreclosure. The drawbacks to purchasing a short sale are the time it takes to complete the transaction, usually between 3 and 6 months, and the lack of clarity along the way. The lender(s) have to be notified of the offer and give their approval (third-party approval), if there are multiple investors involved, this can take time.
Short Sale Tips
If a buyer has the patience and ability to have a flexible moving date, short sales can be a great value. You can generally find a home in fairly good condition for under market value. With a few upgrades and repairs, you can insulate yourself against any possible further decline in the market.
The short sale transaction can go a lot smoother if the agents involved, both buyer and seller agents, are trained and experienced. There are a few national certifications that equip agents to deal with the demanding details and specialties of short sales. CDPE, Certified Distressed Property Experts, is one. Chris Highland is a CDPE and has experience with short sales.
Use our MLS Search to search Short Sales in Frederick Md.
Use our MLS Search to search for Foreclosures in Frederick Md.
___________________________________________________________
Frederick Md Real Estate
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate
email us: isell4u2@msn.com
TEXT US: 301-401-5119
0 comments:
Post a Comment