Want to make a deal on a short sale?

Are short sales good deals?

The short answer is "sometimes". Many people hear the phrase "short sale" and routinely think of a seller that is in default and must sell their house fast to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to do well from another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have depreciated. In these instances the discounted price may in fact be in line with actual market values, not below.

What's involved in buying a short sale?

• Prior to making any purchase offers, do your homework. Using a knowledgeable real estate agent from Provident Realty Group to help you research a property will help you make informed decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this data can help you make a decision about how much to offer.

• Hire a real estate agent with short sale knowledge. Provident Realty Group can aid you in expediting the transaction and make sure you're protected. Don't permit inexperience to hold up the closing process. Put my experience and knowledge to work in your favor.

• Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Be informed that many 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 sale terms. In most cases 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 normally 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 isn't going to pay for repairs. Be sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Provident Realty Group, when I write an offer, I'm looking out for your interests first and foremost and will always suggest that you make your offer contingent upon the inspection results.