Ready to purchase a short sale?
Are they good deals?
Occasionally. Most people hear the phrase "short sale" and routinely think of a seller that is in default and needing to sell their home promptly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to take advantage of another's misfortune. More commonly, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In these cases the "bargain" price may in fact be closer to true market values rather than below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using a knowledgeable real estate professional from Lake Country Real Estate, Inc. to assist you with researching a property will help you make informed decisions. We can help reveal to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this data can help you make a decision about how much to offer.
Get a REALTOR® with short sale knowledge. Lake Country Real Estate, Inc. can assist you in expediting the transaction and make certain you're protected. Don't let inexperience hold up the closing process. Put my experience and knowledge to 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 most short sales will not close in 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. It's not uncommon that your offer will be seen by 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 normally non-negotiable when working with a short sale. The lender is selling the property "as is" which means the lender won't be paying for repairs. Make sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Lake Country Real Estate, Inc., when I write an offer, I am looking out for your interests above all else and will always recommend that you make your offer contingent upon the results of the inspections.