Looking to buy a short sale?

Are short sales good deals?

Every now and then a good deal will come along. Most people hear the words "short sale" and automatically think of a seller that is insolvent and needs to sell their home fast to avert further financial problems. This is at times 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 cases such as these the discounted price may in fact be in line with current market values instead of below.

What's involved in buying a short sale?

• Before you make any purchase offers, do your homework. Using a qualified real estate agent from RE/MAX Performance to support your research of a property will help you make informed 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. Having these facts can help you determine how much to offer.

• Hire a REALTOR^® with short sale experience. RE/MAX Performance can aid you in expediting 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 generally take longer than a typical real estate transaction. Be informed that many 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 sale terms. In most cases your offer will be presented to a committee for approval, which will add time - sometimes even 2 to 3 months.
• Home protection warranties, buyer credits and allowances, and closing cost concessions are generally not up for negotiation when dealing with a short sale. The lender will be selling the property as seen which means the lender won't be paying for repairs. Be 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 recommend that you make your offer contingent upon the inspection results.