Many investors are asking the big question... should l be looking at buying foreclosures or short sales.
The answer is not cut and dry. However, in many cases short sales may be the right choice for three reasons. First, they are priced similarly to foreclosures. Second, at this time there are more short sales to choose from than foreclosures. Third, they are often better condition since the home owner usually lives in the home and can augment your inspection with full property disclosures.
The third factor is important since most investors are not general contractors and have to pay retail or near retail for fixing up a property. The lack of disclosures and AS IS condition of a foreclosure can lead to some ugly post close of escrow problems. This simple factor can make a big difference to your bottom line.
The BIG downside to short sales is time. It still takes a long time to close escrow on a short sale. The other caution is the seller's lender may come up with some surprise fees at the end like back HOA dues.
We all know investing in real estate is a gamble. That's part of the fun for many hard core investors... throw the dice and see what come up. Short sales are simply one of the games you can choose to play.
We have a lot more information about short sales on our dedicated short sale web site... www.Short-Sale-Phoenix.com.
Best to you,
Gene Urban & Ron Urban
The Urban Team at Realty Executives Phoenix
602-234-5777
