Looking to buy a short sale?
Are they good deals?
Occasionally. Most people hear the term "short sale" and automatically think of a seller that is in default and must sell their property fast 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 is current with their mortgage, but property values have declined. In these instances the reduced price may in fact be consistent with true market values rather than below.
How do I buy a short sale?
- Prior to making any purchase offers, do your research. Using an experienced REALTOR® 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, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Locating this data can help you decide how much to offer.
Get a real estate professional with short sale experience. RE/MAX Bay to Bay can assist you in expediting the transaction and make certain you're protected. Don't permit inexperience to hold up 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. A lot of the time your offer will be presented to a committee for approval, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are generally not up for negotiation when buying a short sale. The lender will sell the property as seen which means the lender isn't going to pay for repairs. Make sure you 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 will be looking out for your interests above all else and will always suggest that you make your offer contingent upon the results of the inspections.