Want to make a deal on a short sale?
Are short sales bargains?
From time to time, yes. Many people hear the term "short sale" and automatically think of a seller that is in financial trouble and must sell their home promptly to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on another's misfortune. More commonly, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have declined. In these instances the reduced price may in fact be closer to actual market values rather than below.
What's involved in buying a short sale?
- Always do your homework before making any offers. Using an experienced real estate agent from Mia Howe Realty to assist you with researching a property can help you make informed decisions. We can help find out to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Getting this data can help you determine how much to offer.
Hire a real estate agent with short sale expertise. Mia Howe Realty can assist you in expediting the transaction and ensure that you're protected. Don't allow inexperience to delay the closing process. Let my experience and knowledge work for you.
- Even with an experienced real estate agent and under the best circumstances, buying a short sale property will usually 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 discounted price. It's not uncommon that your offer will be seen by 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 usually not negotiable when dealing with a short sale. The lender is selling the property "as is" which means the lender won't be paying for repairs. Be sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Mia Howe Realty, when I write an offer, I will be looking out for your interests first and will always recommend that you make your offer contingent upon the inspection results.