Want to purchase a short sale?
Can I get a bargain on a short sale?
Occasionally. Often times people hear the phrase "short sale" and routinely think of a seller that is insolvent and needs to sell their house fast to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to take advantage of another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In cases such as these the reduced price may in fact be closer to actual market values instead of below.
How do I buy a short sale?
- Always do your homework before making any offers. Using a qualified REALTOR® from RE/MAX Performance to assist you with researching a property will help you make informed decisions. We 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. Acquiring these facts can help you make a decision about how much to offer.
Use an agent with short sale experience. RE/MAX Performance can help expedite the transaction and make sure you're protected. Don't let inexperience slow down 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 most short sales will not close in 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the terms of the sale. 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 warranties, buyer credits and allowances, and closing cost concessions are usually not up for negotiation when working with a short sale. The lender will be selling the property "as is" which means the lender isn't going to pay for repairs. Make sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At RE/MAX Performance, when I write an offer, I will be looking out for your interests first and will always suggest that you make your offer contingent upon the inspection results.