• Call/Text: (813) 784-7744
    • Send Me an Email

The Tampa Real Estate InsiderThe Tampa Real Estate Insider

South Tampa Realtor

  • Menu
  • Home
  • Meet Rae
  • Search
    • Advanced Search
    • Map Search
    • Listing ID Search
    • Address Search
    • Browse by City
    • My Account
  • Buyers
    • Buying With Me
    • Featured Properties
    • Mortgage Calculator
    • My Listing Manager
  • Sellers
    • Selling With Me
    • Sold Portfolio
    • FREE Home Valuation
  • Communities
    • Channelside District
    • Downtown Tampa
    • South Tampa
    • Seminole Heights | Tampa Heights
    • Gulf Beach Area | St. Petersburg | Clearwater
    • Westshore Marina District
    • Downtown St. Pete
    • Cheval Golf Community
  • TREI Blog
  • Get in Touch
  • Rave Reviews

Are you really getting a better deal on a short sale or foreclosure, or is it all an illusion ?

If you could get the same deal buying a home from a seller instead of a short sale or bank foreclosure would you?

So what’s the big attraction to short sales and foreclosures? Can you really get a better deal buying one? That seems to be the number one question people ask me. They say “I only want to look at short sales and foreclosures”. I hear this from buyers almost every time I consult with them the first time.

I wanted to know that my buyers were going to get the same deal buying a home from a regular seller, which seems to be everyone’s biggest fear right now. By only looking at distressed sales we would take half the homes on the market and say we just don’t want to look at them. front

I called a local appraiser here in Tampa to get the facts.

What happens in the appraisal process?

We look for the most comparable sales regardless of short sales and foreclosures. Some homes do sell at market value, and some don’t. Some foreclosures are trashed and they can’t be comparable to a regular home sale. Jeff Alpert, of Action Appraisal Services, said “Homes in South Tampa are in desirable neighborhoods are selling for same amount most of the time. However, everything is on a case by case basis. The reality is the home must appraise, and appraisers are using short sales and foreclosures as comps.”

An appraisers’ job is to find the best comps available for the subject property. If an average house sells for 200K, and a similar foreclosure sold for 150K, they probably won’t use it because it’s not the norm and something strange may have been going on with the sale. Often there are missing appliances, mold, or the home needs a total rehab.

Jeff said, “In Riverview, there are so many foreclosures that everything is selling way below market value. Their job is so hard because the banks are saying that they are either overvaluing or undervaluing the homes. The appraiser finds the happy medium. It doesn’t matter if it’s a foreclosure or short sale.”

If a short sale appraises less than market value you won’t get the deal you thought you would.

Sometimes the BPO (Broker Price Opinion) comes in higher and the bank says no, we’re not doing the deal and everything falls apart. Now you just wasted 3-6 months, so you need to make a realistic offer to begin with. Low ball offers just aren’t being accepted.

When asked, this is what Lain Rogue had to say about short sales and standard sales:

“I think it’s in the psychology of it– people associate short sale with good deal. They automatically conclude that the price of the house is less than its actual value since the bank has agreed to sell for less than what the owner actually owes (thus instantly meaning good deal in one’s mind)…for a buyer to know if a standard sale is a good deal– it requires “extra steps” to get the comps and review..although if they have you, it should take out those steps out.”

It seems that even in a short sale, the value of the house should still be assessed by reviewing the comps.

What about those instances where someone paid too much for a house? Just because the bank will let it go for less than what they owe doesn’t necessary mean that the price is less than market value.

I fear I may have gotten a bit convoluted in this, but I think people are just assuming that short sale means less than market value. A wise buyer should still do their due diligence and do the comps- short sale or not!!! But as we have come to learn…fair market value is only what one is willing to pay, right?

Posted in: Short Sale vs Foreclosure Tagged: First Time Home Buying Advice, Foreclosures and Bank Owned, How to buy Short Sales

Post navigation

« NEW FHA RENOVATION MORTGAGE LOAN GUIDELINES
Tampa, Fl Housing Market Trends- March 2011 »

Search Our Blog

Search for:

Browse by Category

Browse by Topic

Best Neighborhoods in Tampa Best Places to buy a home buyers market tips Buying a Home buying real estate in tampa Channelside Condos For Sale Choosing the Right Realtor Condo Market News Condo Market Update Tampa current housing market in tampa florida Downtown Tampa Condos and Lofts Downtown Tampa Updates Financing and Mortgage News First Time Home Buyers First Time Home Buyer Tax Credit First Time Home Buying Advice Foreclosure Statistics Tampa FL Historical Neighborhoods-Tampa homestead tax exemption How to sell as short sale investing in condos Investing In Real Estate Luxury Home Communities new construction tampa property tax update Real Estate Investing Tampa real estate market tampa real estate news Relocating to Tampa sales statistics Selling Your Home Short Sale Process Tampa Short Sale Realtors Tampa South Tampa Real Estate Tampa Housing Market Tampa Real Estate Tampa Real Estate Market Tampa Real Estate News Tampa Realtors Tampa Relocation Guide Things to Do in Tampa Tips for Listing your home Tips for Sellers Top tampa realtors When is a good time to buy?

Explore Communities

  • Channelside District
  • Downtown Tampa
  • South Tampa
  • Seminole Heights | Tampa Heights
  • Gulf Beach Area | St. Petersburg | Clearwater
  • Westshore Marina District
  • Downtown St. Pete
  • Cheval Golf Community

Recent Posts

  • Inventory May Never Be This Low Again | Tampa Housing Market 2021
    Inventory May Never Be This Low Again | Tampa Housing Market 2021
    16 hours ago
  • Thinking of Cashing in on Real Estate in 2021? Housing Market Predictions..
    Thinking of Cashing in on Real Estate in 2021? Housing Market Predictions..
    18 hours ago
  • Top 3 Results You Should Expect From Your Realtor
    Top 3 Results You Should Expect From Your Realtor
    2 days ago
  • Tampa’s Highest Priced Neighborhoods-Luxury Real Estate Report
    Tampa’s Highest Priced Neighborhoods-Luxury Real Estate Report
    5 days ago

Rae Anna Conforti

  • Call or Text Me

    (813) 784-7744

  • Send Me an Email

    Ready to Help

  • 1001 S. MacDill Ave

    Tampa, FL 33629

© 2021 Tampa Real Estate Insider | All Rights Reserved

Agent Reputation – Real Estate Website Design

Privacy Policy | DMCA | Sitemap