When looking at homes for sale in Colorado Springs, many people get lost in the discussion of short sales, REO, equity, etc. Knowing the terms being thrown around will help you make the best decision for your situation. We’ve gathered information about home sales to help you get started.
Standard Homes for Sale in Colorado Springs
You’ll also hear these called equity sellers. The seller has equity in the property. These homes are usually in the best condition and the sellers tend to be willing to work with you on repairs, closing costs, etc.
Downside: these are often the most expensive because they are in good condition and the sellers know it.
Bank Owned and REO Sale
In this scenario, the homeowner lost the home and it returned to the lender. These can be called distressed sales or foreclosure sales. The buyer is dealing with the lender who now owns the home.
The upside is these homes often sell for lower prices. The downside is they’re often in poor condition. Make sure you get all the inspections because the seller is not required to make the same disclosures as a standard seller.
Don’t let the name fool you – “short” sales do not happen quickly. In this scenario, the homeowner still owns the property and they’re trying to sell it for less than they owe on it. Why? They may be upside down on the property or unable to pay the mortgage. Whatever the reason, they need to get rid of the home.
In this type of sale, the lender must approve and be willing to accept the loss. Sometimes there’s more than one lender which complicates things further.
Why get involved in a short sale? These homes are generally listed below market value. However, they can involve additional fees that must be paid in cash.
Approved Short Sale
This is a short sale where the price has been pre-approved by the main lender. Often, a potential buyer negotiated a price, the lender agreed to it, and then the buyer backed out. It’s not guaranteed the lender will approve the price again, but you have a better chance.
The lender can get a BPO (broker price opinion) if they feel the market has improved. If the broker determines a higher price, the lender may want to negotiate the original “approved” price.
Probate and Trust Sales
When a homeowner dies, the home is often owned by a trust. These homes for sale in Colorado Springs can be fairly similar to a standard sale.
On occasion, the listing will stipulate that a court confirmation is required. Open bidding takes place at the hearing. Any offer is considered unconditional (no inspections, discussion of closing costs, etc.).
Want more information about homes for sale in Colorado Springs? Contact us to talk to one of our experienced realtors.