There can be usually is a major difference between a short sale property and a foreclosure property. Many buyers – with possibly the exception of experienced investors – do not understand the differences.
In many short sales the home owner is still living in the property. They are attempting to sell for less than they owe (thus the term “short sale”) and want as much as they can get for the property. It is not in their best interest to “give it away!” They may be held liable for the difference between selling price and monies owed.
A foreclosure (also known as bank-owned or REO) has been through the foreclosure process. Most often the owner did not have the financial means to handle maintenance and upkeep or chose to not make repairs. In some cases the property has been stripped of appliances, AC units, garage door openers, even the cabinets in some cases! [Some short sales have been similarly defaced.]
Some foreclosures are what is now being termed as a strategic default where the owner has decided to walk away rather than be upside down in a mortgage. It is these strategic default properties (some short sales, some foreclosures) that are, in my opinion, likely in the best condition.
But finding a foreclosure in perfect condition is a myth – much as Sasquatch or the Loch Ness Monster.
Looking for a short sale in Viera, Suntree, Melbourne or Rockledge, Florida? Call me at 321-693-3850 or email me.
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.
Whether your interest lies in a 55+ community such as Heritage Isle, a golf course community such as Baytree National Golf Links or water front, give me a call!
Read my blog Florida Homes for Sale, Moving to Brevard County, Florida, and Brevard County Florida Real Estate Information.
Gary: We must have a different market here. There are always foreclosures to be had in good condition.
Good morning Gary; GREAT post. I'm bookmarking this for future reference for my buyers. Thanks.
Matt - That is good news. The foreclosures I see here have been trashed!
Ken - Thanks. Keep them buying!
Gary, we also have foreclosures in pretty good shape. We went in one today that is a 4-plex in a not great neighborhood and even that is passable. Of course, there are the others, but in our area most folks don't bang holes in the walls, etc.