Short Sales, Foreclosures, and Distressed Properties in the Beach Haven West Real Estate Market
Beach Haven West Real Estate
The Beach Haven West real estate market, like many other real estate markets around the country, have experienced short sales, foreclosures, and distressed properties. Hurricane Sandy, which made landfall at the end of October 2012, increase the number of distressed sales in the Beach Haven West real estate market. Some homeowners were unable to afford the cost of repairs and thus were forced to sell their homes at a loss. Short sales in the Beach Haven West real estate market are a part of the local economy and understanding how they relate to the market helps when looking to invest in the area.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.beachhavenwestrealestate.com | www.BuyLBI.com
Click here to search all homes for sale in Beach Haven West
Short Sales in the Beach Haven West Real Estate Market
There are many misconceptions about a short sale, and understanding how the process works can go a long way to determining if investing in a distressed sale is the right move for you. In its most simple form, a short sale simply means that the current balance of the existing mortgage exceeds the net market proceeds of the house. To put this in a more practical example, if the current mortgage balance on a home is $300,000 but the net proceeds from selling a home, after expenses are deducted, will only be $250,000, there is clearly a deficit. This $50,000 difference between the current balance than the current value creates a short sale. It thanks can maneuver in any one of a number of ways ranging from forgiving the current difference to forcing the seller to take back the difference in a separate mortgage. When looking to buy a short sale in the Beach Haven West real estate market there are a few key points any buyer should be aware of. For example:
- Most short sales were sold as is condition meaning that the buyer will be responsible for any repairs or alterations to the property
- Short sales can often take much longer than a traditional real estate transaction
- A short sale will only be a good value if the cost to purchase the property and the cost to repair any damage are lower than the current market value of the finished home
Buying Short Sales in the Beach Haven West Real Estate Market
Investing in distressed properties can offer excellent returns, but they can be lengthy and at times risky transactions. Once a buyer is committed to a short sale, they are committed for the long haul. In other words they may miss another buying opportunity if they are tired of waiting for event to respond to an offer. In addition, when purchasing a property in as is condition the cost of repairs will fall on the buyer. If a buyer is not aware of the true actual condition, or if there are defects in the property that are not uncovered during the home inspection, the cost of these repairs combined with the cost to purchase the property may exceed the current market value. Therefore, it is important to understand all aspects of a real estate transaction to make sure the investment is profitable. For more information about the Beach Haven West real estate market or short sales in the Beach Haven West real estate market, contact us and we will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.beachhavenwestrealestate.com | www.BuyLBI.com
Click here to search all homes for sale in Beach Haven West