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Even in today's recession economy, the American dream of homeownership has not faded. Young professionals, newlyweds and families are simply finding alternative ways to achieve their home loans and homeownership. The best way to go about it is to save for a substantial down payment and have outstanding credit to help with the interest rate of the home loan. But many home seekers are not able to save the way they once could in order to make that substantial down payment. And many home seekers have had to make sacrifices with their credit lines in order to keep up payments on their monthly bills and to survive the cost of living in their area. And in that, they may have to relocate either interstate or intrastate for dependable employment and better prospects in the homes for sale. Depending upon the location, real estate may be in the flux of a buyer's market or a seller's market. But even in a shifting market, there are three main types of homes for sale. The standard, or "equity" sale, the bank owned sale and the short sale are all determinants of the transfer of ownership from one party to another.
As the economy continues on a path to recovery, many home buyers are in search of the best deals for their money, whether they have a significant savings or not, they want to get the most out of the available homes for sale. One of the best options for the frugal homebuyer is to look into the short sale. It is not bank owned or being foreclosed on. It is when the homeowner is trying to sell the property at a competitive price, rather than what they actually still owe on the property. Their owed price may reflect mortgages taken out against the property and will definitely reflect the shift in market pricing. The downside is that the seller, buyer and lender(s) must come to an agreement, which can drag out the process of closing. The name can be deceiving if not researched thoroughly. On the other hand, a more flexible option is the bank owned or REO (real estate owned) sale. These are foreclosures, so the buyer only presents the offer to the lender. The upside is the highly competitive pricing. But the downside is twofold. One, bidding can get competitive and, two, the house is likely to have been neglected in terms of upkeep during previous ownership or sustained damages during the exit of the previous owner. Learn more about it by following Fourth Avenue Residences.
Lastly, there is the least fiscally beneficial option, which is the standard sale that negotiates directly with the homeowner. It takes the shortest amount of time to negotiate and close. The homeowners are capable of flexibility in home repairs upon inspection and even assisting with closing costs, but they determine the price and the leeway the buyer has to negotiate or they can move on to another buyer. Regardless of the option a homebuyer has to choose based on his or her financial state. There are benefits and drawbacks to all three options. It is up to the buyers to either wait for more favorable market conditions or accept the outcome of their options today.