Looking to buy a short sale?
Are short sales bargains?
The short answer is "sometimes". Many people hear the term "short sale" and routinely think of a seller that is in default and must sell their home quickly to prevent further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have depreciated. In cases such as these the reduced price may in fact be in line with actual market values, not below.
How do I buy a short sale?
- Always do your homework before making any offers. Using a qualified REALTOR® from Future Home Realty to support your research of a property will help you make educated decisions. We can help reveal to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this data can help you determine how much to offer.
Use a REALTOR® with short sale experience. Future Home Realty can help expedite the transaction and ensure that you're protected. Don't allow inexperience to delay the closing process. Put my experience and knowledge to work in your favor.
- Even with an experienced real estate agent and under the best circumstances, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that most 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 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 usually not up for negotiation when working with a short sale. The lender will sell the property "as is" which means the lender won't be paying for repairs. Make sure to reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At Future Home Realty, when I write an offer, I will be looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the results of the inspections.