Ready to purchase a short sale?
Are they good deals?
Occasionally. Many people hear the phrase "short sale" and automatically think of a seller that is insolvent and needing to sell their property quickly 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. Alternatively, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have fallen. In these cases the discounted price may in fact be consistent with current market values, not below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using a knowledgeable REALTOR® from Your City Country Connection to assist you with researching a property will help you make knowledgeable decisions. We can help learn to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Locating these facts can help you determine how much to offer.
Hire a real estate agent with short sale knowledge. Your City Country Connection can aid you in expediting the transaction and make certain you're protected. Don't let inexperience hold up the closing process. Put my knowledge and experience to work for you.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will usually take longer than a typical real estate transaction. Know that many short sales will not close in the customary 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the terms of the sale. Commonly, your offer will be seen by a committee for approval, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are normally not negotiable when dealing with a short sale. The lender will sell the property as seen which means the lender isn't going to pay for repairs. Be sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Your City Country Connection, when I write an offer, I'm looking out for your interests first and will always suggest that you make your offer contingent upon the results of the inspections.