Foreclosures and short sales are not necessarily better deals

My area of Lee County, covers cities among others such as Cape Coral, Fort Myers, Fort Myers Beach, Sanibel, Pine Island

and we know foreclosures and short sales. After all we are one of the counties with the highest percentage of Bank owned properties.

In the last year, as the average price of a home in Cape Coral and Fort Myers was pulled down by the flooding of short sales and foreclosures, we have seen of course, terrific deals for buyers, including auctions. Many Real Estate Agents including myself have been able to offer great opportunities to their clients but don’t be misled. The deals are still here, but the difference between conventional traditional sales and bank owned properties or short sales is not always what is seems.

First of all most great foreclosures sale way beyond the asking price so make sure that your agent makes a detailed CMA

and shows you in clack and white why this home is such a great purchase.

Lee County Short sales and Lee County foreclosures are sold “AS IS”. There is no negotiating for repairs unless you are doing an FHA loan. The FHA will impose certain standards which have to be fixed if not in proper condition. Even though some banks are slowly improving the condition of their properties, many do not have such basic items as washers and dryers, AC in good condition and pool condition including the pool equipment may be in need of repair or replacement. A good portion of short sales have been sitting during the wet months of summers without AC, which would attract mold. There are times when Short Sales lender will negotiate $500 to $1000 for repairs but that is pretty rare.

Last, a conventional sale maybe $25,000 less,the asking price anyway, but that home was better maintained and who knows how much the sellers are willing to negotiate? Depends how much they paid for it, how much is their mortgage and when they bought it.

So when you add all these factors, not to mention better landscaping, the $25,000 for example, are quickly disappearing.

So yes, short sales and foreclosures can be great deals, and there are many true interesting opportunities, but look also at conventional sales and work closely with your agent.

and Happy Hunting!

LLoyd Nichols

Right Choice Realty LLC
cell: 239-810-2980
office: 239-463-5217
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