Short Sale Investing: Are the Bankers Pleading with New Home Buyers to Buy on a Short Sale

Over the past 12-24 months, in specific regions of America the banks have been overloaded with foreclosures, and now they have got no choice but to lower their prices so, those of us who buy REO's and know short sale investing, can make a great deal when acquiring a property directly from the banks. A number of the banks are now focusing on Short Sales, rather than foreclosing and taking another house back.

Of course it depends on which section of the united states you reside in. Believe it or not, there are several areas of the country where home prices have not decreased that much, while other places of the nation, like Nevada, California, Arizona and Florida, prices have collapsed. In the sections of the county where home prices have fallen drastically, you stand to produce a great deal when buying from the banks. In the parts of the country where prices have fallen just a little, you may not be able to make as good a deal, but you should still be able to purchase a home for approximately 15% or more below current market value.

As you may already know, for those who have obtained my courses, I'm not a fan of using realtors when buying or selling a home. That's because historically they sell homes at full retail value. In my opinion that's just a bad business decision.

Buying at full retail, or anywhere near full retail value for a home is simply foolish, unless it's the home you've been dreaming of and it's the home you want to live in for the rest of your life, but that's not the norm, that is a very rare exception to the rule these days.

We train buyers to think more like a real estate investor, and many of us are not fans of employing realtors. I've never used a realtor to buy or sell any previously lived in home. However, to acquire an REO, it just may be to your advantage to make use of a realtor. BUT don't just use any realtor, find THE realtor in your area whose expertise is Short Sales or REO's.

The reason for utilizing a realtor for these two types of purchases is two fold. First, you are buying the home at a Considerable discount and it is the banks that are paying the realtors commission. And second, the realtor just may be doing the vast majority of the negotiating with the banks for you, and I am aware that lots of you might love that you don't have to do it yourself.

That's one factor why I authored a program regarding How to Complete a Home Short Sale. If you decide to use a realtor, you will possess much better understanding - Now you are going to know what precisely the realtor is doing so you are able to keep a count of what is transpiring through the short sale process.

Just because the realtor might be doing the negotiating for you, don't be so quick to accept the first appropriate sales price that they negotiate with the bank. In my opinion, when the bank welcomes the first offer, you could be paying too much for the home. Step in when you need to, because no one is going to look out for your own interest as much as yourself. Guide the process along and don't forget, don't accept the first price. You want to make the bank squirm. Remember, in certain areas of the nation the banks have thousands upon thousands of houses they need to sell. Their inventories are Quite large, so stand firm and make a great deal.

Realtors make a commission on the sales price, so they might not be looking to get you the very best deal on the home. They simply want to make a deal for you so they can generate a paycheck for themselves, so make certain they are willing to work for you in the negotiating process with the banks, getting you the best bargain that they can.

Don't let your feelings buy your next home. Make a good business decision on this occasion. My instruction is to think more like an educated real estate investor. Make a great deal, or don't make any deal.

If the deal on the home doesn't happen, there is no need to fret; there are a host of additional homes to choose from. Just go after another home. Who knows, your next home just could be better than the home you lost. And don't forget, get qualified for a loan and know what your interest rate is prior to deciding to even start the procedure so you will be prepared to move rapidly when you finally find the correct home.

Figuring out how to purchase a home in this real estate market suggests buying a home way under current market value. It only makes sense to discover How to Complete a Home Short Sale.

Receive our FREE Short Sale E-course, plus many more real estate investor secrets, secrets that could quite possibly save you lots of money the next time you purchase or sell a home. Learn how Home Short Sale works. Plus Receive Tips on How to Make Money at Home Online and How to Increase Online Traffic, and Receive Health & Fitness Tips. Receive Your FREE Economic Housing & Health Recovery Package - Membership America.