We are just starting to look for a house to buy. A lot of the houses in our price range are foreclosures and short sales, which isn't a big problem because we rent our current house and we don't have a set timeframe in which we have to move.
We are considering one short sale and I'm going to look at another one tomorrow. We're conflicted about the one that we're considering - it has some really great features and some big negatives.
Fortunately our realtor is one of our best friends, so she'll walk us through everything (it's been almost 10 years since we bought our first house, and it was a much different market and sale). But I'd love to hear about your experiences if you have bought a short sale or foreclosure!
(FWIW, we had crossed the guest house with gargoyles house off our list, but now it's the one we're considering, LOL. The main house is very small and has no air conditioning and would need some updating eventually, but it's a really cute house, and that guest house would make an amazing playroom/family room after I transform it from a rock band rehearsal space/recording studio. Even that idea kind of makes us sad, that it won't fulfill its rock and roll destiny. But how cool would that space be for the kids??)
We haven't bought one, but our neighbors did. It took about 9 months for them to get the house. I feel like that was a longer time than usual,but the previous owners were druggies and in and out of jail. That may have had some bearing on it. It was a huge PITA for them, and in all honesty, they didn't get it at a huge steal, IMO, but the market had changed some since when they first offered to when they closed. But they are happy with it and seem to feel it was worth it.
My BIL and SIL bought a foreclosure. The bank asked for everyone's best and final offer, and they were outbid. Then months later, they noticed it had never settled (they kept tabs on it), went back to the bank, offered about $25K less and got the house. So all said, it took about 6 months or so.
Ill try and think of any other people I know who have had experiences with this. And yes, I think that would be SO COOL to have a guest house for a play area for the kids!!!!
From what I understand, you can put offers on several short sales and just take the first one that is approved, but I doubt there are others with gargoyle light fixtures in our price range, LOL.
oh darn!! i missed the house with the gargoyles ;) do you have pics, Alison?
we bought our house and it was a bank-owned foreclosure. We got it at a HUGE steal. the day we went to look at it, the realtor said, it has just been marked down again. and then we put an offer in even lower. It was originally listed for 50,000 (I think it last sold for $79,000) and we got it for $10,000 cash. Everything went fine. it didn't seem that different than buying our current home, except of course, there was no back and forth negotiating on fixing things ;)
oh darn!! i missed the house with the gargoyles ;) do you have pics, Alison?
we bought our house and it was a bank-owned foreclosure. We got it at a HUGE steal. the day we went to look at it, the realtor said, it has just been marked down again. and then we put an offer in even lower. It was originally listed for 50,000 (I think it last sold for $79,000) and we got it for $10,000 cash. Everything went fine. it didn't seem that different than buying our current home, except of course, there was no back and forth negotiating on fixing things ;)
Wow! Even the foreclosures here aren't selling for much less than their asking prices.
So, the main house is 1080 sq ft, but this "guest house" is 500 sq ft. It is currently being used as a band practice space and recording studio, which is awesome.
And there is a great back patio and a grassy area, which is something we're really wanting, after being driven inside by errant golf balls for 3.5 years!
This is the front of the guest house: (Sorry about the quality - I took the pics with a crappy wide-angle lens)
The main house doesn't have air conditioning but the guest house DOES. We'd need to put new flooring down, as the current floor is polished concrete, and obviously I'd need to paint the whole thing, but it would be rad if we could negotiate to keep the mirror ball and gargoyle light fixtures if we decide to make an offer. :D
I do, but I'm going to get some better ones tomorrow, so I'll show you then. I'll need your sage advice on decorating regardless of where we end up!
The main house is kind of funky and we like that about it. Our random mis-matched furniture would actually look good and boho there!
It's not in the greatest neighborhood, but it's not one I'd be nervous about living in either. Just some run-down houses and yards. The other house I'm looking at tomorrow is in a much nicer neighborhood, is about the same square footage and has no guest house, LOL. We may end up just waiting, too, since we're not in a hurry and don't want to rush into anything (though I'm so impulsive that I'd try to make the best of whatever house we get!).
We saw another house last weekend that is perfect - completely remodeled as a flip. New kitchen, floors, paint, roof, sod, windows, etc. It's gorgeous. But it's also above our price range and John doesn't want to bother with making a low offer.
when we sold our house in NJ, we were encouraged repeatedly by realtors, etc, to do a short sale. we didn't want that on our credit (since we wanted to buy again asap), but we learned a lot.
the main thing we learned is that A LOT of realtors who are handling the short sales don't know what they're doing. the paperwork is apparently extensive and complicated and most realtors screw it up along the line.
i think that 9-12 months is pretty common for time to closing on a short sale. sometimes it's 4 months before the bank even responds to a short sale offer.
it's a difficult process, but definitely one way to get a deal.
when we sold our house in NJ, we were encouraged repeatedly by realtors, etc, to do a short sale. we didn't want that on our credit (since we wanted to buy again asap), but we learned a lot.
the main thing we learned is that A LOT of realtors who are handling the short sales don't know what they're doing. the paperwork is apparently extensive and complicated and most realtors screw it up along the line.
i think that 9-12 months is pretty common for time to closing on a short sale. sometimes it's 4 months before the bank even responds to a short sale offer.
it's a difficult process, but definitely one way to get a deal.
Good to know, thanks!
I think it might be more common in San Diego because we got hit hard by the housing bubble bursting - but this is great to keep in mind!
