Want to make a deal on a short sale?
|A short sale means the homeowner's lender agrees to accept a reduced amount to release a mortgage.|
Are short sales good deals?Occasionally. Many people hear the term "short sale" and routinely think of a seller that is insolvent and must sell their home promptly to avoid further financial problems. This is sometimes 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 isn't delinquent with their payments, but property values have declined. In cases such as these the reduced price may in fact be consistent with true market values instead of below.
What's involved in buying a short sale?
- Always do your homework before making any offers. Using an experienced REALTOR® from James J. Chou, Re/Max 2000 Realty to assist you with researching a property can help you make educated decisions. We can help discover to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Finding these facts can help you decide how much to offer.
Hire a real estate professional with short sale experience. The real estate agents at James J. Chou, Re/Max 2000 Realty can help expedite the transaction and ensure that you're protected. Don't let inexperience hinder 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 usually take longer than a typical real estate transaction. Be informed that most 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 sale terms. Commonly, your offer will go before a committee for approval which will add time - sometimes even 2 to 3 months.
- Home protection plans, buyer credits and allowances, and closing cost concessions are typically non-negotiable when buying a short sale. The lender will sell the property just the way it is which means the lender won't be paying for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At James J. Chou, Re/Max 2000 Realty, when we write an offer, we are looking out for your interests first and foremost and will always suggest that you make your offer contingent upon the results of the inspections.