Excuse Me But Is That House Really For Sale?

Sometimes it seems that the market never stops throwing us curve balls. Use to be you could look at the MLS see homes that were for sale go look at them, make an offer and get an answer usually in a day or two at most. Not so anymore! Recently many potential homebuyers and even Realtors have had to quickly brush up on their Real Estate vocabulary - with Short Sale, Foreclosure and Notices of Default, Loss Mitigation etc. being the primary "new" terms. Now, just as you comfortably wrap your mind around all this new lingo the ugly truth about what it all means is starting to come out.

What is starting to happen is this. Homes are being listed for sale at prices that entice the consumer but when you call for details you find out that the property is being offered for a short sale, often times they already have multiple offers. This means that the seller is trying to fish for offers that are less than what the lender is actually owed. So you, as the buyer, put forth your offer and then wait. And wait and wait and wait and wait. Many times there is no resolution as the homeowner has other problems that hold up the sale. Unresolved bankruptcies, liens from other creditors, etc. Even if there are no problems like that you are forced to wait as the totally overwhelmed banks try and decide how much they are willing to lose on a property. Many banks promise 5 day responses but the reality is much different. All the while, they continue any actual foreclosure action they have on the property. So worst case scenario you can wait and wait and then have the house not close because a different department of the bank has foreclosed on the property.

A second new format we are seeing is homes being advertised for auction. It appears that they are for sale but actually upon enquiry they are actually only up for auction. You must register and wait for the auction day. Show up with certified funds and try to bid on the property you want. This can work , but can also lead to more frustration. Homes can even be pulled from auction prior to the auction day. Buyer beware certainly applies to this process. Make sure you can inspect the property before you go to the Auction.

Then there are the corporate owned homes. Typically these are homes that have been fully foreclosed on and some corporate entity now owns them. They are offered, usually at an attractive price, but once again it is the waiting game. You are dealing with a big company,usually out of the area. There is no opportunity for the agent to present an offer to anxious sellers over the kitchen table the very night you make the offer. This is a file on someones desk. It will happen when it happens. Many of these entities won't even accept phone calls from their representatitve, the local agent, they only accept e-mail communication. Once again the buyer is left in the waiting game. Without a clue as to how many other offers may or may not be in the game.

Can you get a good deal this way. To be sure! For those willing to play the waiting game - willing to submit many offers and wait endlessly for answers there is the potential of a good deal. Some of these properties eventually do sell and sell at pretty good prices. It just depends if you have the willingness to wait. My concern is that conumers are missing out on homes that are a good deal and actually available for immediate sale. Many motivated sellers are still on the market. It really pays to compare the distressed properties to these. A better, quicker deal may be possible in some cases.

The core frustration is that these homes are sitting there being advertised at a price that attracts willing buyers yet cannot be easily or quickly closed on. It makes me think of the express lane at the grocery store. Short Sales, Foreclosure properties and Auctions need not get in that lane! If you are obtaining a loan to make your purchase you have additional concerns in one of these sales as the banks/corporations rarely honor you loan time frames. Make certain you know what your deadlines are before entering into the purchase contract.

I suppose it goes back to that old wisdom that nothing in life is free... the price of admission to this game is endless waiting.