Looking to purchase a short sale?

Are they good deals?

Occasionally. Often times people hear the words "short sale" and routinely think of a seller that is in trouble and needing to sell their house fast to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on 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 in line with true market values, not below.

What's involved in buying a short sale?

• Before making any purchase offers, do your homework. Using a qualified real estate professional from RE/MAX Performance to assist you with researching a property can help you make educated decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Getting this info can help you make a decision about how much to offer.

• Get an agent with short sale knowledge. RE/MAX Performance can help expedite the transaction and ensure that you're protected. Don't let inexperience slow down the closing process. Let my experience and knowledge work for you.

• Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Know that a majority of 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. In most cases your offer will be presented to a committee to approve, which will add time - sometimes even 2 to 3 months.
• Home protection warranties, buyer credits and allowances, and closing cost concessions are usually not negotiable when buying a short sale. The lender is selling the property "as is" which means the lender won't be paying for repairs. Always reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At RE/MAX Performance, 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.