Real Estate Blog

The choices can be overwhelming in a real estate market saturated with inventory. REO properties and short sales - added to new construction and regular resale properties - make an interesting potluck for real estate buyers. If you are diligent, there are many great real estate buys across the United States today.

Most importantly, if you are realistic, you can hit a bullseye in real estate.

I spoke with Connect2Agent member and real estate agent in Scottsdale Arizona, Jan Green, about the multiple housing options buyers have to choose from. Similar to a multiple choice test, there is usually one right answer. Unlike that popular testing method, the right answer changes for each real estate buyer.

While a buyer’s final answer results in a big financial commitment, the reasons for the commitment are personal.

In the Phoenix area, variety is the spice of the real estate market. Buyers are able to choose from a mix of resale, REO (real estate owned) and short sale properties. The majority of the houses on the market right now are ones that are nearing or already in foreclosure.

Four hundred foreclosure properties typically come on the market in a day in Phoenix. Green says it is her job to pick the best ones for her clients - not an easy task. She shared with me that some foreclosures have pools that have not been maintained. These become cesspools for mosquitoes and their larvae.

Other foreclosure properties have been left in varying stages of disrepair, from unsightly yards and dirty interiors to more pressing problems, like water damage due to a burst pipe that’s been leaking and left neglected. Vandalism can also be a common occurrence for REO properties. Green has seen houses where built-in speakers have been ripped out of the walls and the interiors have been gutted of valuables and spray painted.

Green tours many REOs in order to find the ones left unscathed by neglect and abuse. The ones that remain are true diamonds in the rough.

Next are the short sales. These houses are still with the original owner, but are nearing foreclosure. Because the sellers of these houses have fallen behind in their payments and owe more than what they can list the house for, the banks have to agree to the final sales price negotiated between the owner and a real estate buyer.

The short sale process is not for the faint of heart. It can be long and problematic. Green does not recommend short sales to many real estate buyers for this reason. They take longer to close and the deal can go from desk to desk in the loss mitigation department. It is difficult to keep the communication efficient and consistent. The time from contract to closing can be months and in between that time, the deal can fall apart.

Finally, you have the resale and new construction houses. They may not be the cheapest houses for sale in the Phoenix real estate market, but some are aggressively priced to keep up with the abundance of REO properties and short sales. Sellers and builders alike might offer incentives, like free upgrades and closing cost assistance, to tempt home buyers.

The resale and new construction properties are the best-maintained properties in the market today.

Each type of housing has its own flavor. At the end of the day, how do you know where to find the bullseye? I asked Green - who has recently assisted four first-time home buyers in a row - this question. One of the first-time home buyers purchased new construction and the other three purchased REO properties. She broke it down to three questions home buyers need to ask themselves:

• What am I looking for?
• What location do I want to be in?
• What am I willing to sacrifice?

Answer these questions and share your hopes and dreams with your real estate agent. This is where the impartial party can step in and give you the guidance you need. Then step back, adjust your stance, aim and throw … you can hit the bullseye in real estate.

Posted by Rebecca D. Levinson

Here is the original:
How to hit the bullseye in real estate