Buying a home can be fun and stressful. Some of the stress is caused by the unknown. Whether you are a first time homebuyer or a seasoned buyer, arming yourself with information will ease some of the anxiety. Let’s take a look at the different types of selling situations we may encounter.
Traditional: A family has placed their home on the market at a set price. The challenge with this type of sale is the negotiation. The seller wants to receive the highest price while you will want the lowest price. One of the benefits of this sale is that the buyer is able to request updates to the home based on a home inspection.
Foreclosure: This is a lengthy process when the lender is attempting to recover the money loaned to the seller. Typically these homes will need work, whether it is buying all new appliances, fixing holes in walls, or replacing flooring, be advised that this option will likely come with some hard work. The benefit to buying a foreclosed home is that you may be able to purchase it for significantly less than market value.
Short Sale: The lender and seller have come to an agreement to sell the house for market value. If the home sells for less than what the owner owes the lender, the lender forgives the remainder of the debt. Unlike a foreclosed home, the homeowners are more likely to maintain the home and may possibly still be living in the home. However, because the lender must agree to the price of the home, the process to purchase a short sale can take longer.
New Construction: You always have the option to work with a home builder to have your dream home built. This allows you to choose your options and have a home that has finishes to your taste. However, be aware that when you walk through a model home, the highest quality features will be shown and these features may not be realistic in your budget.
As we view various homes, we can certainly discuss these different situations in more detail. In the meantime, please let me know if you have any questions.