Want to purchase a short sale?
Are short sales bargains?
From time to time, yes. Most people hear the term "short sale" and automatically think of a seller that is in default and must sell their home fast to avoid further financial problems. This is at times 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 isn't delinquent with their payments, but property values have fallen. In cases such as these the "bargain" price may in fact be consistent with actual market values instead of below.
What's involved in buying a short sale?
- Always do your homework before making any offers. Using a qualified REALTOR® from Provident Realty Group to assist you with researching a property can help you make informed 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. Having this information can help you determine how much to offer.
Hire an agent with short sale expertise. Provident Realty Group can aid you in expediting the transaction and ensure that you're protected. Don't permit inexperience to delay the closing process. Put my knowledge and experience to 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 informed that many 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 terms of the sale. Commonly, your offer will be sent to a committee to approve, which will add time - sometimes even 2 to 3 months.
- Home protection warranties, buyer credits and allowances, and closing cost concessions are generally not up for negotiation when dealing with a short sale. The lender will be selling the property just the way it is which means the lender will not be paying for repairs. Make sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Provident Realty Group, when I write an offer, I will be looking out for your interests above all else and will always advise you to make your offer contingent upon the outcome of the inspections.