3 different home sellers, 1 very hot market

In today’s market place you have 3 very different types of sellers. Why is this important you may be asking? Well the game they play is very different and some of the rules change when working with a bank-owned home in Minnesota or “foreclosure” vs. a short sale vs. your traditional seller.

Let’s start with the Traditional Seller – This is your typical transaction where a buyer likes a home, makes an offer to the seller who responds, and eventually you have a deal. Then the process starts for inspections, title, mortgage and appraisal. Then the day of closing comes where everyone meets at the table to sign docs and discusses how wonderful the home is. It’s almost always a good experience.

Next we have the dreaded Short Sale – Believe me, this does not mean anything regarding the length of time it will take for your transaction. It means the homeowner is under water or upside down on their mortgage. Basically, they owe more than the property is currently worth and need to obtain approval from the bank, or any other lien holder, who may have a stake in the property in order for you to buy it.

And last, but not least, the Foreclosure – In this scenario, the bank or “investor” has control of the property and is marketing the home with a real estate agent for a quick and successful sale. They almost always list through the Multiple Listing Service, just like any other seller, only the difference is that the seller is a corporation or maybe even a government entity of some type. The person making decisions for the company is called an asset manager and usually only works Monday through Friday from 9AM to 5PM. The don’t respond on weekends or after hours and will get back to you when time permits. While the process may not move quickly, this type of transaction is usually better than a short sale.

As you can tell, it’s important to know who you’re dealing with and what that means to your ability to negotiate and close on your purchase. Please take a minute to review the section on “buying bank- owned homes” to understand the additional costs and implications of buying a bank-owned home in Minnesota.