A short sale happens when the homeowner's lender consents to get a reduced sum to release a mortgage.
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Are they good deals?
Occasionally. Often times people hear the phrase "short sale" and instinctively think of a seller that is in trouble and needs to sell their property promptly to avert further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In these cases the discounted price may in fact be closer to true market values instead of below.
Are you ready to buy a short sale property?
Always do your homework before making any offers. Using a qualified real estate agent from RE/MAX Results to help you research a property will help you make knowledgeable decisions. We can help learn to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Locating this info can help you determine how much to offer.
Hire a real estate professional with short sale experience. The real estate agents at RE/MAX Results can help expedite the transaction and ensure that you're protected. Don't allow inexperience to impede the closing process. Put our 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 generally take longer than a typical real estate transaction. Be aware 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 discounted price. It's not uncommon that your offer will be presented to a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home protection warranties, buyer credits and allowances, and closing cost concessions are usually not up for negotiation when dealing with a short sale. The lender will be selling the property "as is" which means the lender will not be paying for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At RE/MAX Results, when we write an offer, we will be looking out for your interests first and will always advise you to make your offer contingent upon the outcome of the inspections.
When you are ready to buy, whether it is a short sale or a typical home sale, RE/MAX Results can help you. Utilize our experience and knowledge of real estate to be confident you're getting a fair deal and will be protected during the whole deal.
