Want to buy a short sale?
Are short sales good deals?
The short answer is "sometimes". Often times people hear the term "short sale" and routinely think of a seller that is in trouble and needing to sell their home quickly to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to do well from another's misfortune. More commonly, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have declined. In these cases the reduced price may in fact be in line with current market values instead of below.
What's involved in buying a short sale?
- Always do your homework before making any offers. Using a qualified REALTOR® from Your City Country Connection to support your research of a property can help you make educated decisions. We can help reveal to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Finding this info can help you decide how much to offer.
Hire a REALTOR® with short sale knowledge. Your City Country Connection can aid you in expediting the transaction and make certain you're protected. Don't allow inexperience to hinder the closing process. Put my knowledge and experience to work for you.
- Even in the best of situations and with an experienced real estate agent, buying a short sale property will usually take longer than a typical real estate transaction. Be informed that many short sales will not close in the customary 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 discounted price. It's not uncommon that your offer will go before a committee for approval, which will add time - sometimes even 2 to 3 months.
- Home protection 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 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. At Your City Country Connection, when I write an offer, I'm looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the results of the inspections.