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Is there a price advantage in buying short-sale or foreclosed or bank owned properties?

Is it true that I can bid lot lower for the short-sale/foreclosed or bank owned properties? I am looking for investment property with the goal to get return on investment and sell it when price is right. 
  • December 01 2012 - Lauderhill
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Answers (6)

There are many price advantages to purchase foreclosure and short sale properties but make sure you work with an agent familiar with all of the ins' and outs' of these types of purchase transactions.  Ultimately, you can save thousands but it will depend on the home, condition and motivation of the seller, short sale lender and or REO bank.   There are some ways to negotiate with them and produce good results and this is where a properly experienced professional can guide you! 
  • December 04 2012
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If Florida is anything like typical So-Cal markets then a short sale is the way to go.  Your best "deals" will probably come from short sales, but you pay a different kind of price for those:  time.

Typical short sales take 3 months and as long as anyone's guess (my longest short sale took 1.5 years to close) before getting the bank's approval to enter escrow.

Best wishes from So-Cal and good luck
  • December 04 2012
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Profile picture for Ofe Polack
Buying at Auction is for the pros, too many things could go wrong, if you do not know what you are doing.  There could be unpaid taxes, other types of liens, defective tiles, structural issues and much more.
  • December 01 2012
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Profile picture for Carole Tyne

I agree with previous response - best to get an agent to respresent you -- here in AZ certain banks are over pricing properties.  So it is extremely important you find someone that knows your market.  They can advise which are a good deal and have potentical to increase in value.  Best of luck!

  • December 01 2012
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Profile picture for WantToInvest
Thanks.

Is there an advantage in buying at auction? During the auction who makes the decision to accept the offer or not? bank? whats the auction process from buyers perspective?
  • December 01 2012
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Profile picture for Ofe Polack
Find yourself a good buyer agent who is familiar with short sales and foreclosed properties, to begin with.  I much prefer the foreclosed or ban owned properties, since at the point that the bank has the property back its lap, they are more willing to negotiate.  Remember that a property that is bank owned, was probably (although not all the time) for sale as a short sale, then it went to auction and nobody bought it, and now is back on the market.  I have been very lucky buying bank owned properties, and as lucky with short sales but the grief they put you through is not worth it.
  • December 01 2012
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