Are short sales good deals?
Occasionally. Many people hear the phrase “short sale” and routinely think of a seller that is in default and needs to sell their house fast to prevent further financial problems. This is sometimes the case and can be an opportunity for a buyer to make the most of another’s misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In these instances the reduced price may in fact be consistent with true market values rather than below.
How do I buy a short sale?
- Before you make any purchase offers, do your research. Take advantage of our professional real estate experience to help you research a property and make knowledgeable decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Having this information can help you decide how much to offer.
- Use a real estate agent with short sale knowledge. We can assist you in expediting the transaction and make sure you’re protected. Don’t permit inexperience to delay the closing process. Let our experience and knowledge work for you.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will probably take longer than a typical real estate transaction. Be informed that many short sales will not close in 30 days or less. Remember that you’re not only having to get approval from the seller, but the lender must also agree to the sale terms. A lot of the time your offer will go before a committee to approve or disapprove which will add time – sometimes even 2 to 3 months.
- Home protection plans, buyer credits and allowances, and closing cost concessions are typically not negotiable when dealing with a short sale. The lender will sell the property just the way it is which means the lender won’t be paying for repairs. Be sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. When we write an offer, we’re looking out for your interests above all else and will always recommend that you make your offer contingent upon the inspection results.
If you’re ready to buy, whether it’s a short sale or a typical home sale, we can help. Apply our experience and knowledge of real estate to be certain you’re getting a fair deal and will be protected during the full purchase transaction.