Ready to make a deal on a short sale?
Can I get a bargain on a short sale?
Occasionally. Often times people hear the words "short sale" and instinctively think of a seller that is insolvent and needing to sell their home promptly to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of 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 fallen. In these instances the "bargain" price may in fact be closer to true market values rather than below.
How do I buy a short sale?
- Prior to making any purchase offers, do your homework. Using a knowledgeable real estate agent from RE/MAX Performance to help you research a property can help you make informed 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. Finding these facts can help you decide how much to offer.
Hire a real estate professional with short sale experience. RE/MAX Performance can aid you in expediting the transaction and ensure that you're protected. Don't allow inexperience to slow down 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 probably take longer than a typical real estate transaction. Be informed that many 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 discounted price. In most cases your offer will be presented to a committee for approval, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are typically not up for negotiation when buying a short sale. The lender is selling the property just the way it is which means the lender will not be paying for repairs. Make sure to reserve the right to have inspections 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 advise you to make your offer contingent upon the outcome of the inspections.