Ready to buy a short sale?
|When a seller owes more on their home than its value, they can sometimes get the lender to agree to a short sale, whereby the lender consents to release the mortgage for a sum less than what's due.|
Can I get a bargain on a short sale?The short answer is "sometimes". Most people hear the words "short sale" and routinely think of a seller that is in trouble and needs to sell their house fast to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current, but property values have fallen. In these instances the reduced price may in fact be consistent with true market values rather than below.
How do I buy a short sale?
- Always do your homework before making any offers. Using a knowledgeable real estate professional from Schneider, Keaton & Co. to support your research of a property can help you make knowledgeable 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. Locating this information can help you decide how much to offer.
Hire a REALTOR® with short sale expertise. The real estate agents at Schneider, Keaton & Co. can assist you in expediting the transaction and ensure that you're protected. Don't allow inexperience to delay the closing process. Let our 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 many short sales will not close in the customary 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the sale terms. It's not uncommon that your offer will be seen by a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
- Home protection plans, buyer credits and allowances, and closing cost concessions are usually not negotiable when working with a short sale. The lender is selling the property just the way it is which means the lender won't be paying for repairs. Always reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Schneider, Keaton & Co., when we write an offer, we're looking out for your interests above all else and will always suggest that you make your offer contingent upon the results of the inspections.