With all the news about duplex foreclosures, and the great deals people are getting buying foreclosed properties, what’s often overlooked are the tremendous values available in the short sale market.
A short sale is when a duplex owner owes more than the property is currently worth, and negotiates with his lender(s) to settle the debt for less than what is owed.
Why are they such good deals? First, most Minneapolis duplex buyers don’t have the patience for a short sale. Negotiations with the sellers banks can take as little as 30 days, and as many as 6-9 months to resolve. Few people are willing to wait that long.
Because of that, there tends to be less competition for short sale duplexes. And if you think that in this down real estate market there isn’t any for foreclosures either, you’d be mistaken.
Just last week I had a buyer write an offer on a foreclosure duplex that was in very nice condition and a highly desirable area. Her offer was one of five.
Which brings to mind one of the other reason short sale duplexes are a great buy: they tend to be in better condition than most of the foreclosures.
When properties sit vacant, as they often do in the stretch between it being foreclosed on and being brought to market, it’s almost as if their very emptiness causes them to fall apart.
Time and again, for example, I’ve seen vacant duplexes that weren’t winterized in time for the cold; and all the pipes have burst. Or, for some reason, the cold caused large sheets of paint to start falling from the ceiling. Of course, then there’s the inevitable temptation to the neighborhood kids of throwing rocks through windows…
Think of this. Winter’s a good time to sit and wait for a short sale approval. After all, by the time you get bank approval, it may once again be spring; the best season of the year to find tenants, as well as to move!