Ready to make a deal on a short sale?
Can I get a good deal on a short sale?
From time to time, yes. Most people hear the words "short sale" and instinctively think of a seller that is in default and needs to sell their home promptly to avert further financial problems. This is occasionally 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 these instances the reduced price may in fact be closer to true market values instead of below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using a qualified real estate professional from RE/MAX Bay to Bay to support your research of a property can help you make informed decisions. We can help reveal to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Acquiring this data can help you determine how much to offer.
Hire a REALTOR® with short sale knowledge. RE/MAX Bay to Bay can assist you in expediting the transaction and ensure that you're protected. Don't let inexperience slow down the closing process. Let my experience and knowledge work for you.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will probably take longer than a typical real estate transaction. Be aware that a majority of short sales will not close in the customary 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. It's not uncommon that your offer will be presented 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 usually not negotiable when dealing with a short sale. The lender will sell the property "as is" which means the lender won't be paying for repairs. Make sure you reserve the right to perform inspections 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 first and will always recommend that you make your offer contingent upon the outcome of the inspections.