Looking to purchase a short sale?
Are short sales good deals?
The short answer is "sometimes". Many people hear the term "short sale" and routinely think of a seller that is insolvent and needing to sell their house promptly to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to do well from another's misfortune. On the other hand, 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 reduced price may in fact be consistent with current market values, not below.
Are you ready to buy a short sale property?
- Always do your research before making any offers. Using a knowledgeable real estate professional from RE/MAX Bay to Bay to help you research a property will help you make knowledgeable decisions. We can help discover to whom the property is titled, the balance still 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.
Use a real estate agent with short sale experience. RE/MAX Bay to Bay can help expedite the transaction and make sure you're protected. Don't permit inexperience to hinder 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. Know that a majority of short sales will not close in 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the terms of the sale. In most cases 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 normally 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. Always 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'm looking out for your interests first and will always suggest that you make your offer contingent upon the inspection results.