You’ve no doubt noticed that there are six distinct types of listings for you to choose from today:
- Short Sales
- Bank-owned homes
- Investor “flips”
- Owner-occupied, non-distressed, “normal” listings
- Owner-non occupied, non-distressed, “normal” listings
- New Construction
Should you consider one or all? You’ll find good homes in all these categories, so the answer depends upon you and your circumstances.
How much time and patience do you have? A short sale can take months, just to get approval from the seller’s lender.
How much risk are you willing to take? A bank-owned property comes without any property condition disclosures, so you won’t know about any hidden defects that your inspector fails to find. You also won’t have anyone to explain the mechanical systems, so you’ll either have to figure them out for yourself or hire an expert to help.
Investor flips also demand a bit of risk-taking, unless you know the contractor’s reputation. Unscrupulous “flippers” have been known to hide structural defects beneath cosmetic improvements. And, since the owner has never lived in the house, you won’t get property condition disclosures. On the other hand, you will have someone there to explain how things work.
Owner-occupied, non-distressed homes carry the least risk and can usually close shortly after the appraisal and inspections are completed. In addition, owner-sellers are often willing to help out with closing costs or make some minor repairs prior to closing. But – the price may be slightly higher.
Owner non-occupied, non-distressed homes are much like owner-occupied homes, but with a little twist – there’s no property condition disclosure. On the other hand, they may be priced a little lower.
New construction offers some fun and excitement – but you still need to proceed with a buyer’s agent at your side.
Over the next few days I’ll go into more detail about these 6 types of listings, and what you should watch out for / be prepared for with each of them.
P.S. If you don’t want to wait, just call or email! I’d love to talk with you and answer any questions you have about the market or about buying a home.