Want to make a deal on a short sale?
Can I get a good deal on a short sale?
The short answer is "sometimes". Many people hear the term "short sale" and instinctively think of a seller that is in default and needing to sell their property quickly to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to do well from 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 cases the discounted price may in fact be closer to actual market values, not below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using a knowledgeable real estate agent from 24/7 Realty, Inc. to assist you with researching a property can help you make informed decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Finding this data can help you make a decision about how much to offer.
Hire a real estate professional with short sale expertise. 24/7 Realty, Inc. can help expedite the transaction and make sure you're protected. Don't let inexperience hold up 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 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. A lot of the time 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 usually not negotiable when buying a short sale. The lender will sell the property "as is" which means the lender isn't going to pay for repairs. Make sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At 24/7 Realty, Inc., when I write an offer, I'm looking out for your interests first and foremost and will always advise you to make your offer contingent upon the results of the inspections.