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The Property was bank owned. I think JPChase or Wells Fargo. One of the big banks so I doubt there was any distress, although you never know these days lol.
Makes no sense.
Bank -owned foreclosed properties are distressed properties. The place may have been gutted and stripped of electricity and plumbing. Unless you know why property sold for what it did, when it did, it's not relevent information.
Foreclosed properties are not necessarily the best values in a given area.
actually, with that information, I would guess that it was a REO (Real Estate Owned)property that the bank had due to a foreclosure.... in other words a distressed sale.
Please be aware that someone, somewhere WILL get a better deal. It happens all the time. Do YOUR due diligence and find your home. But if you stress that somewhere there is a "better deal", you will lose out on your home. I am finding too many home buyers these days concerned with getting the best deal, instead of buying a home they can afford. Not to mean that I am flippant, just don't get so caught up that you NEVER feel like you can actually buy.
We need to come up with a new name for this disorder!! and then a treatment plan : )
shelly
Yes it was an REO. I don't know if that qualifies as a distressed sale. I was under the impression that a distressed sale was one where the seller has to get rid of the property at all costs. In my opinion, big banks don't seem to fall into that category.
The anxiety which you refer to is one where buyers feel they might be caught stranded. In today's economy, no one has job security. While I can easily manage my potential mortgage, a few turns for the worse on the work side and that could all change. Buyers like me want to know that we'd be able to offload a place at least in a similar range to where we bought. For that to happen we have to buy in the ball park of the best deals going.
I agree with you that there is always someone out there who will get a better deal. I have no problem with that but I at least want to be in a similar ballpark! I thought the offer I gave was a good deal until I saw this other place. If I had closed on this and a month from now tshtf at work, realtors would be pulling comps and I'd be losing my shirt.
I don't think I'm being that unreasonable or in need of psychiatric evaluation.
Bank -owned foreclosed properties are distressed properties. The place may have been gutted and stripped of electricity and plumbing. Unless you know why property sold for what it did, when it did, it's not relevent information.
Foreclosed properties are not necessarily the best values in a given area.
Sorry M.A.M for not providing the relevant info. Both the place I offered on and the property I saw on the appraiser site were vacant lots. Both had electric and one aready had a septic while the other had mains.
I think that this is very relevant because if I have to sell in a hurry, I'll have to price myself accordingly. That includes looking at similar places in similar areas. There are thousands of vacant lots available around town and very few recent sales to compare.
Yes it was an REO. I don't know if that qualifies as a distressed sale. I was under the impression that a distressed sale was one where the seller has to get rid of the property at all costs. In my opinion, big banks don't seem to fall into that category.
The owner had to get rid of the property - or rather, it was foreclosed on. That's a distressed property.
The anxiety which you refer to is one where buyers feel they might be caught stranded. In today's economy, no one has job security. While I can easily manage my potential mortgage, a few turns for the worse on the work side and that could all change. Buyers like me want to know that we'd be able to offload a place at least in a similar range to where we bought. For that to happen we have to buy in the ball park of the best deals going.
You'll never be 100% sure. Never.
I agree with you that there is always someone out there who will get a better deal. I have no problem with that but I at least want to be in a similar ballpark! I thought the offer I gave was a good deal until I saw this other place. If I had closed on this and a month from now tshtf at work, realtors would be pulling comps and I'd be losing my shirt.
I don't think I'm being that unreasonable or in need of psychiatric evaluation.
For what it's worth, I don't think you're a crackpot either.
The anxiety which you refer to is one where buyers feel they might be caught stranded. In today's economy, no one has job security. While I can easily manage my potential mortgage, a few turns for the worse on the work side and that could all change. Buyers like me want to know that we'd be able to offload a place at least in a similar range to where we bought. For that to happen we have to buy in the ball park of the best deals going.
..... If I had closed on this and a month from now tshtf at work, realtors would be pulling comps and I'd be losing my shirt.
I'm still not sure I agree with you that an REO qualifies as a distressed sale, It might fall under the broad definition but it is definitely not distressed.
Distressed to my understanding is where a seller needs to sell at any cost. This normally is followed by an unreserved auction sale. Banks no longer fall into this category. The bank in question has thousands of foreclosed property on its books which it doesn't seem to be in any hurry to get rid of so I'd hardly think they sold because they need the cash!
I'm still not sure I agree with you that an REO qualifies as a distressed sale, It might fall under the broad definition but it is definitely not distressed.
Distressed to my understanding is where a seller needs to sell at any cost. This normally is followed by an unreserved auction sale. Banks no longer fall into this category. The bank in question has thousands of foreclosed property on its books which it doesn't seem to be in any hurry to get rid of so I'd hardly think they sold because they need the cash!
I believe that short sales, foreclosures, REOs, are all considered distress sales.
In the case of the REO, the property goes back to the bank after an unsuccessful foreclosure auction (because more is owed on the property than it is worth) and the bank has to unload it at a loss.
As with short sales, the person that bought the house (I think what you are calling the distressed seller) is bowing out because they cannot afford to sell the house at market value and make up the difference, forcing the bank to take the loss by selling at current market value.
I do agree with you that the banks have a bit more flexibility on how to handle these sales than broke individuals, but they too are part of the same RE market.
Sorry M.A.M for not providing the relevant info. Both the place I offered on and the property I saw on the appraiser site were vacant lots. Both had electric and one aready had a septic while the other had mains.
I think that this is very relevant because if I have to sell in a hurry, I'll have to price myself accordingly. That includes looking at similar places in similar areas. There are thousands of vacant lots available around town and very few recent sales to compare.
So you are looking to buy some land? Do you intend to build on the lot?
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