Ready to make a deal on 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 agrees to release the mortgage for an amount less than what's owed. For more information, just contact me through my site or e-mail me. I'm happy to address questions you have about real estate short sales.|
Are short sales bargains?The short answer is "sometimes". Most people hear the phrase "short sale" and automatically think of a seller that is insolvent and needing to sell their house fast to avert further financial problems. This is sometimes 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 isn't delinquent with their payments, but property values have declined. In these cases the discounted price may in fact be in line with current 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 agent from Carter Realty Company to support your research of a property will help you make knowledgeable decisions. We can help discover to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Locating this information can help you make a decision about how much to offer.
Hire a real estate agent with short sale knowledge. The real estate agents at Carter Realty Company can assist you in expediting the transaction and make sure you're protected. Don't let inexperience slow down the closing process. Let our experience and knowledge work in your favor.
- Even with an experienced real estate agent and under the best circumstances, buying a short sale property will usually take longer than a typical real estate transaction. Know that many short sales will not close in the customary 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the terms of the sale. Commonly, your offer will go before 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 usually not negotiable when buying a short sale. The lender will sell the property just the way it is which means the lender isn't going to pay for repairs. Make sure to reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At Carter Realty Company, when we write an offer, we are looking out for your interests first and will always recommend that you make your offer contingent upon the outcome of the inspections.