Want to make a deal on a short sale?
Are short sales good deals?
Occasionally. Many people hear the term "short sale" and instinctively think of a seller that is in default and must sell their house quickly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to make the most of another's misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In these instances the reduced price may in fact be consistent with actual market values rather than below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using an experienced REALTOR® from Fenton Real Estate to assist you with researching a property will help you make educated decisions. We can help discover to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Locating this info can help you make a decision about how much to offer.
Use an agent with short sale experience. Fenton Real Estate can assist you in expediting the transaction and ensure that you're protected. Don't permit inexperience to slow down the closing process. Put my experience and knowledge to work in your favor.
- Even in the best of situations and with an experienced real estate agent, buying a short sale property will generally take longer than a typical real estate transaction. Be informed that a majority of short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the discounted price. Commonly, your offer will be presented to a committee to approve, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are normally not up for negotiation when dealing with a short sale. The lender will sell the property as seen which means the lender isn't going to pay for repairs. Make sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Fenton Real Estate, when we write an offer,We are looking out for your interests above all else and will always recommend that you make your offer contingent upon the outcome of the inspections.