Want to make a deal on a short sale?
|When a lender and a homeowner agree to release a mortgage for an amount less than what's owed on the property, it's called a short sale. For more information, simply contact me through my site or e-mail me. I'm happy to address questions you have about real estate short sales.|
Are they good deals?From time to time, yes. Often times people hear the phrase "short sale" and automatically think of a seller that is insolvent and needs to sell their property fast to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. Alternatively, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have depreciated. In these cases the "bargain" price may in fact be closer to true market values, not below.
How do I buy a short sale?
- Always do your research before making any offers. Using an experienced REALTOR® from RE/MAX Advantage to support your research of a property can help you make knowledgeable decisions. I can help reveal to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Finding this information can help you decide how much to offer.
Hire a real estate agent with short sale experience. I can take every step to help expedite the transaction and make certain you're protected. Don't permit inexperience to hold up the closing process. Let my experience and knowledge work for you.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will usually take longer than a typical real estate transaction. Know that a majority of 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 terms of the sale. A lot of the time your offer will be seen by a committee for approval which will add time - sometimes even 2 to 6 months.
- Home protection warranties, buyer credits and allowances, and closing cost concessions are typically not up for negotiation when buying a short sale. The lender will be selling the property just the way it is which means the lender won't be paying for repairs. Make sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At RE/MAX Advantage, when we write an offer, we are looking out for your interests first and foremost and will always advise you to make your offer contingent upon the results of the inspections.