The global market for real estate have been hit by an unprecedented crisis (although we like to focus the appropriate real estate opportunities for our clients in privileged areas that are less sensitive to fluctuations in the value $/ m²).
In addition to the properties offered by private developers, today we have properties for sale directly by banks.
Due to the suspension of payment of their loans, many buildings start a different path:
1)The first step is called "Short Sale". This phase is in charge of three characters: the owner of the property, the creditor banks and the prospective buyer. The prospective buyer can negotiate with the bank for a purchase price even lower than the rest of existing mortgage; the bank accepting the offer, try to avoid the cost and time required for the auction.
These negotiations are difficult and time required can not be calculated
(the Bank will try to take time to wait for bigger offers).
2)Foreclosure: the lender provides the property to the highest bidder. There is a time certain, but blindly purchase ("as is"), unable to see the details of the property. In this case you must make a careful examination of documents and property description.
3) ) R.E.O. (Real Estate Owned) ... or as I like to call this stage: "... where the elephants die". When the property is not purchased at auction and return of property of the creditor. In this case we have a new owner: the Bank.
The Bank has a single objective: to restore his credit
The price / m² becomes relative and unimportant, we can see property of equal size in the same area and within the same building for sale at different prices.
The REO property prices are usually 50% of the actual value.
