With the rate at which homes get foreclosed the market for foreclosure houses on sale is swamped with distressed properties waiting to get sold. But another source of pre-owned properties is those that are being sold for purposes other than foreclosures. What are the reasons why a buyer might prefer the homes sold by solid sellers over foreclosure properties. What lessons can foreclosures sellers gain from these solid sellers?
Foreclosures versus Owner-Occupied Home Resellers
The main points where solid sellers might have an edge over sellers of foreclosure houses on sale is that they can negotiate quickly and that their homes are in tip top shape. Solid sellers would need to comply with some standards in terms of the condition of the home they are selling. Unless their buyers is paying more than 30 percent down payment the home should have a solid foundation, a good drainage system and should have no superficial damages at all. Interior systems would all have to be in good shape meaning no issues in terms of electrical connections, plumbing and heating. On the other hands distressed properties are sold as is and it is quite seldom that sellers of foreclosures take on repairs for the property prior to sale. Buyers would have to bear the cost of these repairs. Most foreclosure homes will have some level of damage given the circumstances of the former owner who may not have the resources to maintain the home.
A seller in good financial standing and has maintained the condition of their home before deciding to sell can attract buyers who are eligible for home loans. While a home in good condition may cost way more than foreclosures, they do have more value. Many realtors are aware of this that is why they endeavor to discuss with their buyers the implications of purchasing a distressed property or a well-kept pre-owned home.
Solid sellers are likewise coming from a strong negotiating position having more flexibility compared to sellers of foreclosures. Most sellers of foreclosure houses on sale are under a lot of pressure to sell multiple homes so they may have one or two ongoing negotiations at any given time. Solid sellers however have time on their side and can sit down and properly negotiate a good price in a timely fashion. They can likewise address complaints and observations of their potential buyers and they can actually work out a schedule with their buyer regarding closure and turn-over of the property.