Ready to buy a short sale?
Are they good deals?
The short answer is "sometimes". Many people hear the term "short sale" and routinely think of a seller that is in trouble and needs to sell their house fast to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to take advantage of another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have depreciated. In cases such as these the discounted price may in fact be closer to true market values instead of below.
How do I buy a short sale?
- Always do your homework before making any offers. Using an experienced real estate professional from RE/MAX Bay to Bay to support your research of a property will help you make educated decisions. We can help discover to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Having this info can help you make a decision about how much to offer.
Use a REALTOR® with short sale knowledge. RE/MAX Bay to Bay can aid you in expediting the transaction and ensure that you're protected. Don't permit inexperience to slow down the closing process. Put my knowledge and experience to work for you.
- Even with an experienced real estate agent and under the best circumstances, 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 sale terms. Commonly, 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 generally not negotiable when working with a short sale. The lender will sell the property "as 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 above all else and will always advise you to make your offer contingent upon the outcome of the inspections.