Tuesday, February 25, 2014

Today's Types of Real Estate Transactions

The “Game” of Real Estate is changing daily
Make sure you are working with agents who will
give it to you straight.  
 Today's 3 Types of Transactions

  It’s a prime time to be a home buyer, however, with the "deals" out there come new and unusual ways of doing business. There are inherent pitfalls that may cause frustrations.
We believe in coaching Home Buyers as to the benefits and challenges of this market.
If you have ANY questions please ask!

1. Regular Real Estate Transaction: A seller is selling their house and a buyer is purchasing it.  All negotiations are between the two parties involved. (Usually 30-45 days from offer to closing).

2. Short Sale, AKA “Pre-Foreclosure”: A Real Estate term used to describe a situation where the List (or selling) price is less (or short) what is actually owed on the property and therefore requires the current mortgage company or bank’s approval. (aka 3rd Party approval) (can take 90-120 days or more to complete)  Also known as a “pre-foreclosure sale” .
  • Some challenges:  Never a guarantee the bank will sell the home at purchase price, length of time it takes to get an approval can be very lengthy,  condition of the property can be less than desirable (sellers inability to fund any repairs), etc.
3. REO (Real Estate Owned or Bank Owned) AKA “Foreclosure” Property: A property that has been foreclosed by the bank and is now owned and being sold by the bank. (Usually 30-45 days from offer to closing).  The bank’s number one concern is the net profit.    
  •  Some challenges:  Property condition (as is),  there can be multiple offers on one property, Occasionally, deed issues (from past Foreclosures) can pop up unexpectedly (can take weeks to months to resolve), etc.
  • A note about appraisals:  If you are financing your purchase with a mortgage, the lender will require an appraisal of the property to be done.  These appraisals can sometimes come back “subject” to a particular item being repaired or replaced (Example: a new roof). The challenge is with most distresses properties,  homes are sold “as is” and the seller can many times be unable or unwilling to do the repairs. In some cases we may recommend having your appraisal done prior to spending the money on your inspections. 
Tara Jacobi, Down to Earth Real Estate Group, Ph/Txt  541-326-2300, TaraJacobi@gmail.com