Monday, February 17, 2014

Pros & Cons Of A 'Traditional' Real Estate Sale

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Real Estate Transactions are Competitive in San Diego's Housing Market

As a buyer in today's competitive real estate market it is really important to know the differences between each types of home sellers. This article will cover the advantages and disadvantages a buyer has when working with an 'equity' or 'traditional' real estate seller.

Traditional home sales are becoming more popular in San Diego's housing market because home prices have increased and homeowners are able to sell without having to take a loss.
'Equity' is the difference between the market value of a home and the amount owed to the lender. 'Net Equity' is different from gross equity which is the gross equity less the costs of selling the home.

The Definition of a "Traditional" Real Estate Transaction 

A "traditional" or "equity" real estate sale is where the owner is selling the home outright. A home that is not a "short sale" or Bank Owned (REO). The seller has "equity" in the home and when escrow closes they will usually walk away from the transaction with cash or at least clear the costs associated with the sale in addition to paying off an existing mortgage(s).

Benefits of a 'Traditional' Home Sale 

→ Once the transaction is negotiated between the parties there should be no unusual delays getting to closing
→ The home has typically been lived in or at least taken care of
→ Sellers are generally willing to share how the systems of the home work
→ Sellers are motivated to get documents signed and keep the contract moving forward
→ Typically the less parties/banks involved, the quicker and smoother transactions can be
→ The home may have been fixed up to attract buyers
→ Sellers may be more lenient to getting repairs done vs a bank
→ Timeliness is likely to be important

Potential Drawbacks of a 'Traditional' Home Sale

→ Sellers may be emotional about their property or situation
→ Sellers may not be realistic about their homes condition, value or the current market
→ Some of these listings may be overpriced
→ Traditional listings could expire as the seller may want to sell but does not NEED to sell

Are you looking to Buy Real Estate in San Diego but still need a Buyers Consultation?

Are you looking to sell your home? Or check out your options?

Contact us today for a complimentary Real Estate Marketing Plan to sell your home.

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This article was brought to you by Dream Team Member Teresa Schumacher with Berkshire Hathaway Home Services California Properties.

Teresa Schumacher
Realtor®
PH: 619-995-2132

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