Over the past 12-24 months, in specific sections of the country, banks have been completely bombarded with foreclosures, and now they have no choice but to lower their prices so that people who buy REOs and know to invest in short sale can do a lot. when buying a residence directly from banks. Many of the banks are now concentrating on short sales, rather than foreclosures.

It certainly 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 dropped that much, while in other parts of the country, such as California, Nevada, Arizona and Florida, prices have collapsed. In county regions where home values ​​have fallen dramatically, you are in a position to produce a lot when you shop at banks. In parts of the country where prices have dropped a bit, you may not be able to make such a good deal, but you should still be able to get a home for around 15% or more below current market value.

As you may already know, in case you have obtained my courses, I am not really a fan of hiring real estate agents when it comes to selling or buying a home. This is because, historically, real estate agents sell houses at their full retail value. In my experience, that’s just a bad business decision.

Buying at full retail, or anywhere close to the full retail value of a home is just plain silly, 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’s a rare exception to the rule these days.

We enlighten buyers to think more like a real estate investor, and many real estate investors are not fans of using real estate agents. I have never used a real estate agent to buy or sell a house that I have lived in before. However, to buy an REO, it might be beneficial to use a real estate agent. BUT don’t use just any realtor, look for THE realtor locally whose experience is Short Sales or REO’s.

The reason for using a real estate agent for these two types of purchases is twofold. First, you are buying the house at a huge discount and it is the banks that pay the commission from the real estate agents. And second, the real estate agent could be doing most of the bargaining with the banks for you, and I recognize that a great number of you will love not having to do it yourself.

That’s a legitimate reason why I authored a program on completing a home short sale. If you decide to use a real estate agent, you need to have a much better understanding – now you will know exactly what the real estate agent is doing so that you can keep track of what is happening during the short sale process.

Just because the real estate agent may be negotiating for you, don’t be too quick to accept the proper starting sales price that you negotiate with the bank. In my opinion, if the bank accepts the first offer, you are paying too much for the property or house. Step in whenever you want, because no one will care as much about your interests as you. Guide the process and don’t forget, don’t accept the initial price. You want to make the bank squirm. Remember, in certain regions of the country banks have thousands and thousands of houses that they need to sell.

Real estate agents charge a commission on the sale price, so they will most likely not try to get you the best deal on your home. They just want to do a deal for you so they can write a paycheck for themselves, so make sure they are going to do the work in the negotiation process with the banks, getting the best deal they can.

Don’t let your feelings buy your next home. This time, make a good business decision. My advice is to think more like an educated real estate investor. If the house deal fails, there is no need to worry; there are many more houses to choose from. Just find another deal. Who knows, your next home could be so much better than the one you lost. And don’t forget, you qualify to borrow money and know what your interest rate is even before you start the process so you’re prepared to move in quickly when you find the right home.

Finding out how to buy property in this real estate market suggests purchasing a home well below current market value. It only makes sense to learn how to complete a short home sale.

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