Looking to buy a short sale?
Are short sales good deals?
The short answer is "sometimes". Many people hear the term "short sale" and routinely think of a seller that is insolvent and must sell their property 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. Alternatively, a lender may consider a short sale even if the seller is current, but property values have declined. In these instances the reduced price may in fact be in line with actual market values instead of below.
What's involved in buying a short sale?
- Always do your homework before making any offers. Using a knowledgeable real estate agent from Your City Country Connection to help you research 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. Locating these facts can help you determine how much to offer.
Use a REALTOR® with short sale experience. Your City Country Connection can help expedite the transaction and ensure that you're protected. Don't allow inexperience to slow down the closing process. Put my experience and knowledge to work in your favor.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Be informed that most short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the sale terms. A lot of the time your offer will be presented to a committee to approve, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are normally not up for negotiation when buying a short sale. The lender will sell the property just the way it is which means the lender isn't going to pay for repairs. Be sure to 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 will be looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the inspection results.