Want to buy 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. Should you have questions regarding real estate contact me here or e-mail me.|
Can I get a bargain on a short sale?From time to time, yes. Often times people hear the term "short sale" and routinely think of a seller that is insolvent and needing to sell their property quickly to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to do well from another's misfortune. More commonly, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have declined. In cases such as these the reduced price may in fact be closer to true market values, not below.
How do I buy a short sale?
- Before you make any purchase offers, do your research. Using a knowledgeable real estate agent from Remax Advantage Realty to help you research a property will help you make knowledgeable decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Getting this data can help you make a decision about how much to offer.
Hire an agent with short sale expertise. Since I have been involved with short sale transactions I can help expedite the transaction and make sure you're protected. Don't let inexperience delay the closing process. Let my experience and knowledge work in your favor.
- 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. Be informed that a majority of 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 terms of the sale. Commonly, 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 usually not negotiable when buying a short sale. The lender will be selling the property just the way it is which means the lender will not be paying for repairs. Make sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. When we write an offer, Iam looking out for your interests first and will always advise you to make your offer contingent upon the results of the inspections.