Looking to buy a short sale?
|A short sale happens when the seller's lender consents to get a reduced sum to release a mortgage.|
Are short sales bargains?Every now and then a good deal will come along. Many people hear the term "short sale" and routinely think of a seller that is in trouble and needs to sell their house fast 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. Alternatively, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In these cases the discounted price may in fact be in line with true market values instead of below.
Are you ready to buy a short sale property?
- Before making any purchase offers, do your research. Using an experienced REALTOR® from Peninsula Properties to help you research a property will help you make educated decisions. We can help reveal to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Locating these facts can help you decide how much to offer.
Hire a real estate agent with short sale experience. The real estate agents at Peninsula Properties can assist you in expediting the transaction and make sure you're protected. Don't allow inexperience to hinder the closing process. Let our experience and knowledge work for you.
- Even with an experienced real estate agent and under the best circumstances, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that many short sales will not close in less than 30 days. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. A lot of the time your offer will be seen by 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 generally not 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 Peninsula Properties, when I write an offer, I will be looking out for your interests first and foremost and will always advise you to make your offer contingent upon the inspection results.