Foreclosures NOT the Best Deals

I want to set the record straight on foreclosures.

I have a lot of clients such as buyers and investors in Chula Vista and San Diego that come to me with the sole purpose of purchasing bank owned properties or foreclosures or REOs, which are all the same thing by the way.

The missconception here is that, or the beleif is that a bank owned property will always sell for less than all the other properties on the market whether it be traditional sales, short sales, and what ever else is out there. That is false, because all this is conditioned upon the market.

As it stands right now, February 2010, that is not your best deal. If this was two years ago, banks could not get rid of foreclosures fast enough. You could have gotten a pretty significant discount on a bank owned property, however today with the low inventory in Chula Vista and San Diego, and the amount of buyers out there that are not willing to wait for Short Sales which can take an average of three months from start to finish, bank owned properties are highly sought after which leads to bidding wars and higher prices. This is why I’m shooting this video today, letting you know foreclosures are no longer the best deal.

In my opinion, the best deal right now if you have the time would be Short Sales. Now a lot of buyers may not have that luxury because of the tax credit expiring soon but if you an investor or just looking for a bottom line, short sales may be your best bet. Only if you’re actually one of the first ones in there. It’s about speed and not so much quality in this case, lenders and agents representing short sales are just trying to submit an offer as quickly as possible to get this deal rolling.