Ready to make a deal on a short sale?
Are short sales good deals?
The short answer is "sometimes". Often times people hear the term "short sale" and instinctively think of a seller that is insolvent and must sell their house quickly to avert further financial problems. This is sometimes 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 depreciated. In these instances the discounted price may in fact be consistent with actual market values rather than below.
Are you ready to buy a short sale property?
- Always do your homework 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 educated decisions. We can help find out to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Getting this information can help you make a decision about how much to offer.
Get a real estate agent with short sale knowledge. RE/MAX Bay to Bay can aid you in expediting the transaction and make sure you're protected. Don't permit inexperience to hinder the closing process. Put my experience and knowledge to work in your favor.
- 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 most short sales will not close in less than 30 days. Remember that you're not only having to get approval from the seller, but the lender must also agree to the terms of the sale. Commonly, your offer will be sent to a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
- Home protection warranties, buyer credits and allowances, and closing cost concessions are normally not negotiable when working with a short sale. The lender is selling the property "as is" which means the lender isn't going to pay for repairs. Be sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At RE/MAX Bay to Bay, when I write an offer, I am looking out for your interests above all else and will always advise you to make your offer contingent upon the outcome of the inspections.