Real Estate Buying Tip: Look for Short Sales
If you are looking for investment real estate (or even to buy a home for personal use), you might consider looking for short sales. Short sales offer an interesting opportunity to buy property for a lower price. This can help you in terms of real estate investing, and it can help you save money in the case of buying a home for personal residential use.
What are short sales?
Simply put, short sales happen when a seller asks for less than is still owed to the bank. What you buy the house for will not be enough to pay of the home mortgage on the property.
If the mortgage is a traditional mortgage, short sales can offer amazing opportunities to get a home at below market value. Unfortunately, some second mortgages and negative amortization mortgages can mean that even with short sales you are still paying close to market value for the home. Make sure that you have the property appraised before you purchase it.
Real estate investing opportunity
If you can buy on short sales, you can increase your real estate investing opportunities. Your mortgage payments will be lower, making it easier for rental payments to you to cover (and exceed) the payments to the bank. Additionally, if you have managed to get the home for below market value, you will also be able to build equity in it faster. And, short sales increase the chance that you will be able to flip the home for an immediate profit (although this is very difficult in the current market).
Buying your own home
Even if you don’t plan to buy for investment purposes, short sales can be beneficial. They help you when buying your own home, allowing you a better price that can save you money. It can be very satisfying to save money on a home loan, and this is possible when you look for short sales.
Tags: home loan, short sales, home mortgage, home mortgage blog,
real estate buying tip, home mortgage blog, mortgage lender
December 14th, 2007 at 12:38 pm
[…] opportunitiesOne real estate tip that can help you find good Baton Rouge value is to look for short sales. Short sales are transactions in which the seller agrees to sell the home for less than he or she […]