What is a Traditional Sale?
The basic definition of a traditional sale is one in which the owner is selling the home outright.
This home is not in foreclosure, short sale or bank owner (REO).
Benefits of a Traditional Sale
Faster Closing - When homes are put on the market in the traditional way, it means that there are fewer parties involved. Along with this, the parties involved will respond much quicker. Basically, the less the bank is involved the better. If you are looking for a quick and easy transaction make sure traditional sales are on the top of your list.
Smoother Transaction - Along with this you eliminate most concerns with the house not being well maintained as may be the case in other types of home sales. You will not have to worry about evictions or any other uncomfortable situations with the sellers as they are willing and ready to sell.
Well Maintained Homes - When buying foreclosures, you run the risk of purchasing a home that not been well maintained. When buying a traditional sale home, this is much less likely. It is usually the case that the homeowner is still in the home and is actively maintaining it.
Downfalls of a Traditional Sale
Price Differences - When the bank is selling the home, the price is generally at fair market value but when a home owner is selling their home, they may have unrealistic views on what is the real value of their home. Along with the seller, you may also be unaware. This is where your real estate agent steps in. They know the market as well as the home and are able to advise you on what you should be paying for the home.
Doing Your Own Research - When buying a foreclosure, the lender will research the property to ensure they will not be harming themselves financially. With a traditional sale, however, this is not the case. For this reason you will be responsible for researching the home yourself.