According to an August 2017 report published by the American Bankers Association, existing home sales across the United States are slightly decreasing due to very short supply and builders having difficulty keeping up with demand. Out of 5.4 million existing home sales in July, one percent were short sales. which means there is still hope for buyers looking for a diamond in the rough.
Short sales are not as common as they were a few years ago, but they can be a wonderful way to score nice condos in Little Italy, lofts in East Village, or even penthouses for sale in Gaslamp Quarter. Banks have learned they are better off moving quickly to accept a short sale than letting a property end up in foreclosure. With this in mind, here are 5 advantages of purchasing a short sale in 2017.
1. Bargain Pricing
The bottom line of short sales is that they are often great deals for buyers, particularly in upscale markets such as downtown San Diego. The short sales being offered today are part of loss mitigation strategies that mortgage lenders and institutional investors apply to avoid expensive and complicated foreclosures. In many cases, banks may even leave some room for negotiation on top of the already low price.
In hot real estate markets such as San Diego, a short sale allows buyers to lock into a low price that will likely appreciate in the near future. This would be particularly beneficial to buyers who plan on tapping into equity between now and 2020.
2. Motivated Sellers
As partners in short sale transactions, banks and homeowners have a common interest in getting prospective buyers to the closing table as soon as possible. Both parties know what a foreclosure will mean: a judicial process, damaged credit records, court costs, attorney fees, and the possibility of an ugly eviction process.
3. Potential Financing Advantages
Depending on the bank’s policies in relation to managing real estate owned (REO) portfolios, prospective buyers may be offered attractive mortgage offers in terms of interest rates, reasonable closing costs, or reduced processing fees. The bank may also be willing to offer streamlined approvals and processing just so it can keep an active mortgage loan on the books.
4. Quick Move-In Potential
Buyers who are in temporary housing situations do not have to wait too long for a short sale approval if they plan to get conventional financing. However, this may not be the case for those applying for FHA or VA loans.
5. The Element of Surprise
Some of the most unexpected properties can be found on short sale listings, and they are often in much better condition than those held in REO portfolios. Short sale properties tend to be maintained well by motivated sellers, and you never know if the condo, loft, or penthouse of your dreams may be listed as a short sale.
Whether you’re looking for a short sale or regular sale in downtown San Diego, make sure you connect with a real estate agent who understands the local market. If you’re looking for real estate in Columbia District San Diego or another neighborhood in the downtown area, get in touch with the trusted agents at 92101 Urban Living. Call 619-649-0368 today to start the search for your dream home.