Ready to purchase a short sale?
Are short sales bargains?
Occasionally. Most people hear the words "short sale" and automatically think of a seller that is in financial trouble and must sell their property promptly to avoid further financial problems. This is sometimes 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 is current, but property values have declined. In these instances the "bargain" price may in fact be in line with actual market values, not below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using a qualified REALTOR® from Mia Howe Realty to assist you with researching a property will help you make informed decisions. We can help reveal to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Locating these facts can help you decide how much to offer.
Hire a real estate agent with short sale knowledge. Mia Howe Realty can aid you in expediting the transaction and ensure that you're protected. Don't let inexperience impede 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 usually take longer than a typical real estate transaction. Be informed that a majority of 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 discounted price. A lot of the time your offer will go before a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are typically non-negotiable when dealing with a short sale. The lender will sell the property "as is" which means the lender isn't going to pay for repairs. Always reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At Mia Howe Realty, when I write an offer, I'm looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the results of the inspections.