While the term FORECLOSURE is still the most popular term used by the marketplace to describe a distressed property, there are other terms which may indicate an opportunity to purchase a home at a discount to the market.
The goal for all buyers is generally to identify a property they have the greatest interest in and purchase it for as little as possible, regardless of its status as ‘foreclosure’ or ‘short sale.’ The following lists are broken down by certain terms which may indicate a willingness by a seller to aggressive in their pricing:
- Foreclosures – Also known as REO (Real Estate Owned) or Bank Owned, the ‘Foreclosure’ is a property whose owner failed to make payments on the property and the bank repossessed the home.
- Addendum – Generally an indicator of a corporate sale or other type of distressed sale. Short Sales, Relocation or other types of sales where a corporate entity is involved will typically involve additional paperwork.
- Estate – In the event an owner has passed, many times the executor of the estate is tasked with selling the home. Often times, better deals can be struck, especially if a quick closing and strong financing are a part of the offer.
- Motivated – A list of properties where the remarks indicate a high degree of motivation that a seller would be aggressive in the sales price of the property.
- Bring all – A list of properties with “Bring all” in the remarks, implying a buyer should not be shy about making a low offer
- Assessment – An indicator that the agent has referenced that the sales price is below the assessment of the property.
- Inverted Lot to House Ratio – Assessments with low improvements values and high land values may indicate a great opportunity to create value with renovation, addition or subdivision
Please note that the use of the terms is in no way a guarantee of a specific course of action by a seller. Additionally, the lists generated may show homes which have used these terms in the remarks in other contexts.