Want to make a deal on a short sale?
Are they good deals?
Sometimes. Many people hear the phrase "short sale" and routinely think of a seller that is in trouble and needing to sell their house promptly to avert further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. In contrast, a lender may consider a short sale even if the seller is current, but property values have declined. In these instances the "bargain" price may in fact be in line with current market values instead of below.
Are you ready to buy a short sale property?
- Always do your research before making any offers. Using a knowledgeable real estate professional 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 amount owed to the lender, and whether or not a foreclosure notice has been filed. Having this data can help you decide how much to offer.
Use a real estate agent with short sale knowledge. Your City Country Connection can help expedite the transaction and ensure that you're protected. Don't let inexperience impede the closing process. Let my experience and knowledge work in your favor.
- 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 aware 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. A lot of the time your offer will be sent to a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
- Home protection warranties, buyer credits and allowances, and closing cost concessions are usually non-negotiable when working with a short sale. The lender will be selling the property as seen which means the lender won't be paying for repairs. Always reserve the right to perform 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 above all else and will always recommend that you make your offer contingent upon the results of the inspections.