Best tactics For Buying A House? (hardwood floors, bank owned, short sales)

[Mosco]

We're thinking of buying in Palencia, near St Aug. Wondering what tactics are recommended for getting a great deal? Short sale or foreclosure? How best to proceed? Any other ideas? Buying mid-Winter an option too.

Thanks.

[Peter the Brit]

It is always better to get a foreclosure over a short sale as the former is bank owned and price fixed whilst the latter is still owned by the defaulting seller who needs the banks permission to agree to any deal and usually is upside down so the deals are very hard to put together.
Also the winter has an influx of snowbirds and the prices are better in spring after the sellers are frustrated when they have not made a winter sale.
That being said there are currently some excellent bargains in Palencia but check the taxes as the cdd added to the tax can make a very high annual expenditure

[SaintCabbage]

Originally Posted by Peter the Brit

It is always better to get a foreclosure over a short sale as the former is bank owned and price fixed whilst the latter is still owned by the defaulting seller who needs the banks permission to agree to any deal and usually is upside down so the deals are very hard to put together.

Maybe from a time perspective, but I would disagree in every other way. A foreclosure is generally a run-down house that's been sitting unoccupied for months and months and months and the bank just wants to dump it to the highest bidder. Anything not bolted down was ripped out and taken by the negligent previous home-owner. It was owned by someone who couldn't afford to pay and generally chose to do nothing about it but not pay and leave. You think a person like that took really good care of that house? Now obviously not always true, and there are diamonds in the rough, but foreclosures are sold way lower than market value for a reason.

Short sales take longer because of all the approvals involved, but it's generally owned by someone who needs to sell a house that is worth less than they owe. Other than that, it holds the same risk as anyone else selling their house for whatever reason. A foreclosure it going to have much more inherent risk and likely a lot of work is going to have to go into it for it to be habitable. Short sales are generally move-in ready.

[Mosco]

Thanks of the info guys! I'll keep all this in mind. Does anyone know if Palencia has specific brokers who handle properties there?

[EricBoyd]

Originally Posted by SaintCabbage

Maybe from a time perspective, but I would disagree in every other way. A foreclosure is generally a run-down house that's been sitting unoccupied for months and months and months and the bank just wants to dump it to the highest bidder. Anything not bolted down was ripped out and taken by the negligent previous home-owner. It was owned by someone who couldn't afford to pay and generally chose to do nothing about it but not pay and leave. You think a person like that took really good care of that house? Now obviously not always true, and there are diamonds in the rough, but foreclosures are sold way lower than market value for a reason.

Short sales take longer because of all the approvals involved, but it's generally owned by someone who needs to sell a house that is worth less than they owe. Other than that, it holds the same risk as anyone else selling their house for whatever reason. A foreclosure it going to have much more inherent risk and likely a lot of work is going to have to go into it for it to be habitable. Short sales are generally move-in ready.

I think it's important to make the distinction between a property in foreclosure and a foreclosed property. The primary difference is in who owns the property.

[Peter the Brit]

Originally Posted by Mosco

Thanks of the info guys! I'll keep all this in mind. Does anyone know if Palencia has specific brokers who handle properties there?

I have to answer with care because of the Forum rules of solicitation.

There are many different listing agents selling in Palencia all of whom are retained by the seller.

You really need a buyers agent specialist to get all the information about the listings in Palencia and to act independently (at no cost to you as they split commission with the sellers agent) to get the best deal.

He or she will search all the listings through the up to date multiple listing service which is not accessible to the public (other sites draw old mls details) and then you pick which ones suit you arrange viewings and your agent will conduct negotiations with the sellers agent to attempt to reach an agreeable deal. He / she will then work with you to achieve a smooth closing.

[grayrunner]

I would avoid short sales unless you find something you really like. They can go on forever.
Bankowned sales are the cheapest and easiest to close, but the terms are harsh and you have to be ready with the highest bid usually within a set period of time and that might be just a week. I wouldn't waste my time on any auctions if they have an undisclosed reserve and you have to ask them if they do because they don't volunteer it.

I saw a brand new three bedroom go on the west side of Route 1 in St Augustine that was unfinished. All it needed were sod on the front lawn, carpeting or hardwood floors on top of the slab, paint and appliances. Sold for 22k. Theyr'e out there but you have to be persistent and quick. IT might not be precisely what you want but you get it for almost nothing.

[Wunderkinder]

Originally Posted by Peter the Brit

I have to answer with care because of the Forum rules of solicitation.

We wouldn't want to see you get arrested for solicitation!

[Peter the Brit]

Originally Posted by Wunderkinder

We wouldn't want to see you get arrested for solicitation!

Nice one !

[Pauly UK]

I bought a short sale last time around and if you have a good short sale experienced agent then it can be a tiresome process but get there eventually. HOWEVER they are not running as smoothly as they have done nowadays and you hear more and more about short sales dragging on then the values going up so the short sale 'collapses' and the lender/seller just resells to someone else for more!

I would personally avoid them like the plague. The price they are advertised at is rarely the same as what they will accept and approve so why not go for a regular sale or a foreclosure... much much easier and less likely to be let down.

I bought a foreclosure for my first, and closed within three weeks. I have just bought a resale regular ..... and closed within a week! Obviously both cash sales.