One of the most frequent questions we get as Naples Realtors is whether our clients should look at foreclosures or short sales to get the best deal on homes and condos for sale.
At White Sands Realty, we usually recommends going with a foreclosure over a short sale of the same caliber and location when buying Naples real estate. Bank owned foreclosures offer several advantages including:
- Faster Response Time - Short Sales (really, “Long Sales”) on Naples FL homes can take 3 months to over a year with no guarantees. Banks respond to foreclosures within a week or less in most cases.
- Straight Forward – On Short Sales, just before closing the bank often asks the buyer to pay off a lien or portion thereof and the seller to come to the table with money as well. That doesn’t happen in a foreclosure where liens are paid off before negotiations begin.
- Clean Pools & Mowed Yards – Most bank owned foreclosures are kept in livable condition by the bank or listing Realtor. This is not so in a short sale where pools can take thousands of dollars to restore to their working state if they owner has not maintained the home.
Even though the short sale process is improving with many lenders, it can still be a time consuming and frustrating process for the buyer looking for a great deal on Naples homes.
In a short sale the lender is agreeing to take less than is owed on the property. The lender is primarily concerned about making sure the borrower/seller is truly unable to pay them and not just “unwilling” to do so. This investigation of the seller is what takes the majority of the time in a short sale. Yes, the lender is concerned about the property valuation, but their primary concern is preventing borrowers who are able to pay from walking away from their obligations just because they feel they paid too much for their home.
As a buyer, this investigation process can be frustrating to say the least. Buyers are seldom made aware of all the “behind-the-scenes” requests made of the property seller and they are left wondering. As a result, most short sale buyers often walk away long before the bank ever gets back with an approval or counteroffer.
On the other hand, Naples foreclosures are already bank owned and the lenders losses are already known. The previous owner is out of the picture and the bank must only decide what further loss they are willing to take.
Select this link for a complete list of all Bank Owned, Naples Foreclosures for Sale.
Mark Weber is a Naples Realtor, Broker & Owner of White Sands Realty in Naples, Florida. He is a 30+ year resident of Naples and specializes in finding people Naples homes on or near the beach and waterfront. If you are interested in Naples real estate or have a question about this article please contact him through email.
