Buyer Myth #5; Short Sales Are a Goldmine Opportunity and a Can’t Miss Investment

As you can tell from reading this report, there are many upsides and downsides in short sale real estate. If you know what you are doing and are prepared for the process that often comes along with purchasing a short sale property, opportunities can certainly be found.

You will be able to save a little money on the purchase price, but you have to make sure you are covered elsewhere. Be sure to factor in the fix-up costs, property taxes, HOA dues, any land lease fees and other things that will impact the overall price of the property.

Here is a good rule of thumb to consider when looking at a short sale or foreclosure purchase; add up the selling price and the fix-up price. If together they are equal to or ideally less than what you perceive to be regular market value for that property, then it is probably a viable investment.

To determine the regular market value for the property, consult with a real estate agent who can provide you with a Comparative Market Analysis – CMA – using similar properties and recent sales in the neighborhood as ‘measuring sticks’ to estimate the value of the home.

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