Looking to make a deal on a short sale?
Can I get a good deal on a short sale?
The short answer is "sometimes". Most people hear the term "short sale" and routinely think of a seller that is in trouble and needs to sell their property promptly to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to make the most of another's misfortune. Alternatively, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have depreciated. In these cases the "bargain" price may in fact be in line with true market values, not below.
How do I buy a short sale?
- Always do your research before making any offers. Using a knowledgeable real estate professional from RE/MAX Bay to Bay to assist you with researching a property can help you make knowledgeable 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. Finding this information can help you determine how much to offer.
Use a real estate professional with short sale expertise. RE/MAX Bay to Bay can assist you in expediting the transaction and make sure 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 circumstances, buying a short sale property will probably take longer than a typical real estate transaction. Be informed that most short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the discounted price. A lot of the time your offer will be sent 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 typically non-negotiable when buying a short sale. The lender is selling the property just the way it is which means the lender isn't going to pay for repairs. Make sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At RE/MAX Bay to Bay, 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 results of the inspections.