Any Experience on Chicago Short Sales and Auctions?

Question

Good Morning,

Just wondering if anyone has had any success with short sale listings or auction properties?  Considering these options since the market is moving much more quickly now that the weather has finally warmed up!

Any advice, tips, success stories, or challenges you'd like to share are more than welcome and appreciated!  I've lost a few properties lately so I'm ready to get going!  Thanks in advance!

Phil Z. · Answer

The best short sale deals are in neighborhoods with a mix of deeply distressed and completely remodeled properties.  You need the bad comps to justify the price to the bank.  If the bad comps are in an inferior neighborhood within .5miles that will work out in your favor.

Also houses that need major repairs make good short sale investments.

John Hauser · Answer

Our biggest problem with short sales is that they take forever.  We like the foreclosures because there is a lot less messing around.  But I think @Mark Ainley  makes a good point that if you don't mind the little bit of work to make an offer, the shotgun approach might get you something at a good deal.

John

Mark Ainley · Answer

I think tying up as many short sales right now is important to keep the door open to a good deal. With markets going up swiftly in Midwest and more so Chicago many banks/lenders will come back wanting more money then the original short sale agreed to price with the seller but there may be a few that slip thru the cracks and get approved at the lower original agreed to price between buyer and seller. We always tell the listing agent to accept our offer that is reasonable enough to get accepted and let the lender tell us if we are off on what they think the lender can get.

I like online auctions because you get lucky with timing of an auction ending where people just forget the end time to put in that last second offer and sometimes you can steal a deal.

Larry Smet · Answer

Auctions can be difficult when you're going up against the big guys that are doing it day in day out.  You take on a lot more liability when you buy at the auction so you need quite a bit of infrastructure to do as much due diligence as you can before the auction.

Good luck

Travis Russell · Answer

Thanks @John Hauser ! Great advise.

Travis Russell · Answer

Awesome, thank you @Mark Ainley !

Any Experience on Chicago Short Sales and Auctions?

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