"Even though buying a bank owned home can still be a hassle, it’s less stressful and takes much less time to close compared to a short sale."
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Seattle, WA (PRWEB) September 08, 2011
Shiloh Street executives say homebuyers are falsely led to believe that buying a short sale home in the Seattle real estate market is quick, easy and profitable. Many homebuyers are ending up frustrated and disappointed after 6-12 months of short sale negotiations that have failed due to the homeowner’s bank.
“A short sale occurs when a seller owes more on their home than what it’s worth”, explains Josh Sanders, Founder of Shiloh Street. “The homebuyer isn’t only dealing with the seller but also negotiating with the bank that holds the mortgage. The key is getting the bank to agree on an offer that is less than the amount owed on the mortgage, which is what takes 6-12 months, in most cases.”
The advertised listing price of a short sale home may be deceiving to prospective homebuyers. The seller of a short sale home doesn’t have the authority to accept offers and must first get the approval of their lender. Sellers will often set a listing price far below the home’s market value to entice buyers; a listing price the seller’s bank has not approved.
“Homebuyers searching Seattle homes for sale see what they think are great real estate deals until they make an offer and realize the bank never approved the listing price. They are lucky if the bank responds at all in the first 3-4 months of submitting an offer”, Josh explains. “Most of these short sale transactions end up failing after months of hassling with the seller’s bank.”
Instead of focusing on short sales, Shiloh Street’s Real Estate Brokers are advising their clients to look at bank owned properties. “A bank owned home has already been through the foreclosure process so it’s much easier to deal with the bank at that point. You can get to closing in half the time a short sale transaction would take”, Josh stated.
While short sale homes initially appear to be great bargains, bank owned properties are a realistic alternative for savvy homebuyers looking for big discounts on homes for sale in Seattle. The advertised listing price on a bank owned home has already been approved, which helps homebuyers to close in half the time compared to a short sale property.
With all the hype surrounding short sale homes, reality is proving that they don’t live up to the promises buyers are led to believe. “Even though buying a bank owned home can still be a hassle, it’s less stressful and takes much less time to close compared to a short sale. If it’s a deal you’re after, focus on bank owned homes before you look at short sales”, says Alan Duffy, Designated Broker of Shiloh Street.
Shiloh Street was founded in 2009 by Seattle WA real estate veteran, Josh Sanders, and continues to represent its clients with a ‘No Sales Pressure’ promise. For homebuyers interested in purchasing homes for sale in Seattle WA or in the Greater Seattle area, visit http://www.shilohstreet.com to search listed properties or speak with a Shiloh Street Real Estate Broker by calling (425) 533-1310.