Bank owned and short sales properties dominate the Snohomish County real estate market and it’s no surprise that many buyers are actively searching for these types of properties. But are these properties the bargain of the century or are they more trouble than they’re worth?
Being an active agent, I can contest to both scenarios being true. Great homes with no home inspection issues and excellent buys that require sweat equity. In 2009, one of my clients purchased a short sale and by doing so he received an excellent deal on a home in Mill Creek. This home is situated in a established neighborhood with few fixer uppers left – this home seemed to be the troubled home on the block. On the flip side, a few other 2009 clients purchased bank owned homes in Marysville that where just a few years old and required little to no work.
The Fixer Upper
The majority of the short sales and banked properties fall into this category because the owners, or previous owners, where going through financial hardship and as a result regular home maintenance was neglected. This is not uncommon and, in my opinion, should be expected. My Mill Creek client purchased the home because it needed an injection of blood and sweat to recapture the brilliance the home once had. But this may not always be the case. When showing to clients I come across many homes that are rapidly approaching the point of no return. The homes are in such poor condition that it is highly recommended to have additional inspections, pest and mold etc, just to see if the purchase would even be worth it, envision The Money Pit with Tom Hanks and Shelley Long (1986). Both scenarios require a heavy investment of money, time and oodles of patients. When buying the fixer upper make sure you know what you’re getting into and ready for a lengthy hands on home.
The Great Deal
Some short sales and bank owned properties fall into The Great Deal category. Again, in 2009 I worked with a family to purchase a short sale in Aspen. The home was just a few years old and looked like it never had been occupied. It was outfitted with every known functional and cosmetic upgrade and was a classic example of Northwest Architecture. Another two buyers, also in 2009, purchased bank owned homes in Lake Stevens and Marysville that where built in 2006 and needed zero to a little touch up work at extremely low prices. These buyers took their time watching the market, viewing many homes and waited for that right home to appear. Both parties had goals of putting the least amount of money and time into the home post purchase. This has left them time to take weekend vacations instead of working on their home.
The property condition spectrum for short sales and banked owned properties can swing from “like new” to “I need a shower when I leave” so just be very aware what you are purchasing. As of March 8, 2010 there are 724 short sales and 339 bank owned properties in Snohomish County with those numbers expecting to rise in the next few months. So if you’re looking at banked owned or short sale properties there are no shortages.
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Purchasing Short Sales & Bank Owned: Deals or Headaches?
Bank owned and short sales properties dominate the Snohomish County real estate market and it’s no surprise that many buyers are actively searching for these types of properties. But are these properties the bargain of the century or are they more trouble than they’re worth?
Being an active agent, I can contest to both scenarios being true. Great homes with no home inspection issues and excellent buys that require sweat equity. In 2009, one of my clients purchased a short sale and by doing so he received an excellent deal on a home in Mill Creek. This home is situated in a established neighborhood with few fixer uppers left – this home seemed to be the troubled home on the block. On the flip side, a few other 2009 clients purchased bank owned homes in Marysville that where just a few years old and required little to no work.
The Fixer Upper
The majority of the short sales and banked properties fall into this category because the owners, or previous owners, where going through financial hardship and as a result regular home maintenance was neglected. This is not uncommon and, in my opinion, should be expected. My Mill Creek client purchased the home because it needed an injection of blood and sweat to recapture the brilliance the home once had. But this may not always be the case. When showing to clients I come across many homes that are rapidly approaching the point of no return. The homes are in such poor condition that it is highly recommended to have additional inspections, pest and mold etc, just to see if the purchase would even be worth it, envision The Money Pit with Tom Hanks and Shelley Long (1986). Both scenarios require a heavy investment of money, time and oodles of patients. When buying the fixer upper make sure you know what you’re getting into and ready for a lengthy hands on home.
The Great Deal
Some short sales and bank owned properties fall into The Great Deal category. Again, in 2009 I worked with a family to purchase a short sale in Aspen. The home was just a few years old and looked like it never had been occupied. It was outfitted with every known functional and cosmetic upgrade and was a classic example of Northwest Architecture. Another two buyers, also in 2009, purchased bank owned homes in Lake Stevens and Marysville that where built in 2006 and needed zero to a little touch up work at extremely low prices. These buyers took their time watching the market, viewing many homes and waited for that right home to appear. Both parties had goals of putting the least amount of money and time into the home post purchase. This has left them time to take weekend vacations instead of working on their home.
The property condition spectrum for short sales and banked owned properties can swing from “like new” to “I need a shower when I leave” so just be very aware what you are purchasing. As of March 8, 2010 there are 724 short sales and 339 bank owned properties in Snohomish County with those numbers expecting to rise in the next few months. So if you’re looking at banked owned or short sale properties there are no shortages.
Related Page: Bank Owned Property Search
Related Post: Short Sales and Distress Properties