Our Real Estate Blog

For some reason many first time home buyers mistakenly believe that short sales are only for investors; few things could be further from the truth. The fact is, first time home buyers might have more to gain from purchasing a short sale property than nearly anyone else – if they understand the opportunities and pitfalls. Find out for yourself why first time homebuyers should love short sales with these bits of insight:

1.    Low Prices = Instant Equity. Not only will first time homeowners benefit from an affordable monthly mortgage but it is often possible to purchase a home with instant equity. Short sale investors generate profit by buying low then selling higher…instead, learn how to put the same profit potential into your pocket with instant equity.

2.    Lower Taxes & Insurance. Property taxes and insurance represent a significant portion of your annual housing expense; purchasing a short sale property may result in dramatically reduced taxes and insurance rates. Think of it as the savings that keeps going and going and going…

3.    Tax Incentives. Thanks to Uncle Sam as well as state and local governments, first-time homebuyers may benefit from tax incentives, grants, down payment assistance and other financial incentives when purchasing a property.

4.    Great Rates. Rates are still low - including 30 year fixed mortgages. The average is currently under 5.5 percent fixed which would easily purchase a property in the $135,000 range (well within the short sale guidelines) with PITI of under $1,000 per month! That includes a monthly mortgage of $744, Taxes and insurance of $165, PMI of $92. Lock in an affordable lifestyle while building equity. If you need to move or relocate it’s always possible to rent the home out or sell for a profit (remember, you have instant equity if you buy right!). Not only does a home provide stability for the entire family but locking in a low cost of living is a great way to protect your financial future against uncertain economic outcomes such as job loss or an eroding investment.

5.    Motivated Sellers. The perfect home for you might be someone else’s idea of a nightmare. Every individual is different. Remember, you are often doing the seller a great service by making a decent offer on a short sale property – otherwise, they might face financial ruin without the ability to get out from a mortgage they can no longer afford or make a fresh new start. Use an experienced agent to negotiate the transaction while creating a win-win for all involved.

6.    Negotiable Deals. Sellers have often made upgrades or might be willing to include other items in the offer such as hot-tubs, ATV or items they may no longer need or desire to keep. Don’t be afraid to negotiate appliances or other extras as part of the negotiation process.

7.    Fixers. Not afraid of doing a little work? First time buyers can score big hits by doing some of the work on their own; painting, yard work and other minor repairs can make a solid home appear older and less appealing than it really is. Learn how to see through the unsightly carpet stains and overgrown weeds to find a real diamond in the rough. A few weekends of cleaning, painting and renovations may turn out to be the best investment you ever made!

We can help you navigate through this process, give us a call, Today!

(904) 260-1166