These are four “types” of transactions that can produce great results for buyers:
- New Home Builders may offer to make concessions on homes that are under construction in their existing inventory. They are also including many of the features that contemporary buyers want in their homes…such as granite counters, wood or other desirable flooring materials, iron balusters, etc. If you want to pick a home that is not in inventory you’ll pay asking price. In the 2015 market if they negotiate much off the list price on a home to-be-built it could be a problem location. Be aware.
- Motivated Re-Sale Seller Home may or may not be updated or remodeled. Requires negotiation and the final price can be below or above the listed price. There are those properties out there that are in the right location and have been updated with the right equipment, flooring, cabinetry, counter tops, and fixtures that sell for more than the listed price…and quickly in the current market So although it seems straight forward, it can often be tricky.
- Institutional Seller Can be a property that has been through the foreclosure process, is owned by a corporation to facilitate a job transfer, or is an estate sale. These will also usually require negotiation. Sometimes these “professional” sellers will place the property on the market at a price below perceived market value in order to attract multiple bidders. Sometimes in this situation the purchase price ends up above the listed price. Almost always if the listed price is below market value you have to move fast and deliberate to be successful. If you obtain current market data (from us of course) it’s apparent when they are priced so favorable.
- Short Sale It requires a pretty thick skin, a lot of flexibility and much patience to navigate these deals as a buyer. You are dealing with a motivated seller that owes more on the property than they can net from the sale at the closing. The owner must negotiate a deal with their existing lien holder after they have arrived at an agreement on price and terms with the buyer. The mortgage company has to ok the loss in order to make your deal workout and avoid foreclosure.