Alexandria VA Short Sales | Who Benefits When A Foreclosure Is Stopped?
Top Listing Agent Explains
When it comes to buying a home in Alexandria VA, the idea of purchasing a home for below market value is very appealing. Back in the days when property values were very stable or appreciating quickly, many people didn't give much thought to a foreclosure popping up here and there.
But as the Alexandria VA real estate market changed and more foreclosures were entering the market, the shift went from 'finding the great deal in a great neighborhood' to 'do I want to buy in this neighborhood where values are going down?'
When you sell your home as an Alexandria VA short sale, there are benefits to the homeowner, the buyer, and the surrounding homeowners:
- First and foremost, for the homeowner, they avoid the damaging effects of having a foreclosure on their credit report. Even if a homeowner decides to walk away, the ability to apply for any type of loan or credit will be impacted for several years.
- The buyer is able to purchase a property that is likely in better condition than a foreclosure. While the 'fixer-upper' buyers represent a smaller portion of the homebuying population, a home that is well cared for and maintained will likely sell quicker.
- For the neighboring home owners, they realize the benefit of not seeing their property values plummet as the result of a foreclosure. When property values plummet, homeowners are less likely to use equity in their home for things that might enhance their property values, for example finishing a basement, adding a deck, or any other type of addition.
- No vacant homes that will be the target for squatters or vandals. While there are some Alexandria VA short sales that are vacant, most homeowners stay in the home until closing.
- Real estate commissions are paid by the bank, not the seller. In most cases, the homeowner is not able to make any contributions to the sale of the home. Quite frankly, this is also another reason why many 'For Sale By Owners' who are upside down try to sell themselves. Many people are unaware that when you sell your home as a short sale, the bank approves the terms of the sale, including the real estate commission.
- For HAFA short sales, the homeowner can receive a relocation credit of up to $3000 at closing. While most short sales do not allow the owner to make any money from the sale, a HAFA approved short sale will allow the homeowner to receive money for relocation expenses.
With the latest news about foreclosure moratoriums, and scandals behind banks improperly filing foreclosures, more buyers are being skeptical about purchasing bank owned homes. The thought of not being able to acquire title insurance is enough to make some buyers exclude foreclosures in their search.
When you buy an Alexandria VA short sale, you are purchasing directly from the owner, but the sale is approved by the owner's lender(s), so title transfers directly from the current owner to the purchaser.
Are you thinking about selling your Alexandria VA home as a short sale? Use this website right now to see if you qualify, or call me directly at 703-623-8759.