Three types of houses for sale
Even in the current economic downturn, the American dream of homeownership hasn’t faded. Young professionals, honeymooners, and families are simply finding alternative ways to get their home loans and home ownership. The best way to do this is to save for a substantial down payment and have outstanding credit to help with the interest rate on the home loan. But many home seekers can’t save for that substantial down payment like they used to. And many home seekers have had to make sacrifices with their lines of credit in order to keep up with their monthly bill payments and survive the cost of living in their area. And in that, they may have to relocate either interstate or within the state for dependent employment and better prospects in homes for sale. Depending on the location, real estate may be in the flow of a buyer’s market or a seller’s market. But even in a changing market, there are three main types of homes for sale. The standard or “equity” sale, bank property sale, and short sale are determinants of the transfer of ownership from one party to another.
As the economy continues on the road to recovery, many homebuyers are looking for the best bang for their buck, whether or not they have significant savings, they want to get the most out of available homes for sale. One of the best options for the frugal homebuyer is to consider a short sale. It is not owned by the bank and is not being repossessed. This is when the homeowner is trying to sell the property at a competitive price, rather than what he actually still owes on the property. Your price owed may reflect mortgages taken against the property and will definitely reflect the change in market price. The downside is that the seller, buyer, and lender must come to an agreement, which can delay the closing process. The name can be misleading if not thoroughly investigated. On the other hand, a more flexible option is the sale of bank ownership or REO (real estate ownership). These are foreclosures, so the buyer only presents the offer to the lender. The advantage is the highly competitive price. But the disadvantage is double. One, the offers can become competitive and, two, the house has likely been neglected in terms of maintenance during the previous ownership or damage sustained during the departure of the previous owner.
Finally, there is the least fiscally beneficial option, which is the standard sale that is negotiated directly with the owner. It takes the least amount of time to trade and close. Owners are capable of flexibility in home repairs upon inspection and even help with closing costs, but they determine the price and the leeway the buyer has to negotiate or can pass on to another buyer. Regardless of which option a homebuyer has to choose based on their financial status. There are advantages and disadvantages to all three options. It is up to buyers to wait for more favorable market conditions or to accept the outcome of their options today.