subject: Are Newport Beach Short Sales Better A Better Deal Than Foreclosures? [print this page] The age old debate when it comes to what the better real estate deal is rages on. Should you take advantage of a foreclosed home first, or decide instead on a short sale option? Which of these two things are better when it comes to the final purchase price? The short, and unsatisfactory, answer is this: it depends. While foreclosed homes can be placed on the market for a very cheap price, there may be a reason for their foreclosure that goes beyond the buyer defaulting on his or her loan. While that is the ultimate catalyst to a foreclosure action, you've got to think about things like the location of the foreclosure. If the buyer has had to reduce the amount of the home a number of times, and if he is showing an overeagerness to sell, then it may be that you get a great deal today, but what of the future when it comes time to sell? Will you ever be able to realize the full valued potential of the home?
On the short sale side of things, you may pay a little more than you would with a foreclosure, but you are still getting a home at less than its perceived value. Since these homes are usually put on the market by distressed homeowners, who have serious concern for their credit rating, you can rest easy in the knowledge that you are probably buying from an area that has a good reputation and that will have an impressive resale value over time. While there are no guarantees in the real estate game, this is generally how the two concepts work.
How do you sort out what the good deals are from the bad? It starts with the agent that you choose to represent you. Short sales are highly competitive, but they also do not bring with them the power to negotiate that you could expect from many foreclosed homes. You generally get one shot, and you have to make it your best offer or risk losing out to another investor. Before you make an offer on either home, you need to see what the average time each home spends on the market is. You also need to check the general sale price. These two factors are the biggest when it comes to realizing the true value of the home that you will potentially be buying.
Real estate presents a number of opportunities for the savvy investor, especially in the Newport Beach area. Before you decide which way to go, talk to your agent. Do the research, or rather have him do the research, necessary for determining the true value, and base your offers on either one accordingly.
