Realtor, MBA, GRI
Can I get a good deal on a short sale?
The short answer is "sometimes". Many people hear the words "short sale" and instinctively think of a seller that is in trouble and needs to sell their house fast to prevent further financial problems. This is sometimes 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 cases the "bargain" price may in fact be in line with actual market values rather than below. Are you ready to buy a short sale property?
- Always do your research before making any offers. Using an experienced REALTOR® like Mike Sullivan to assist you with researching a property will help you make informed decisions. We can help learn to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Acquiring these facts can help you make a decision about how much to offer.
- Get an agent with short sale expertise. Mike can aid you in expediting the transaction and make certain you're protected. Don't let inexperience hinder the closing process. Let our experience and knowledge work in your favor.
- 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. Know that many short sales will not close in less than 30 days. 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 go before 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 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. 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 outcome of the inspections.