Want to buy a short sale?
|When a lender and a seller agree to release a mortgage for an amount less than what's owed on the property, it's called a short sale. If you have questions about real estate in the San Francisco Bay Area, contact me here or e-mail me.|
Can I get a good deal on a short sale?Sometimes. Often times people hear the phrase "short sale" and automatically think of a seller that is in trouble and needing to sell their home quickly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In cases such as these the "bargain" price may in fact be closer to true market values, not below.
Are you ready to buy a short sale property?
- Always do your homework before making any offers. I 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.
Use a REALTOR® with short sale knowledge. In the days of the "crash" I did so many short sale transactions I became a mentor and teacher to other agents and assisted them in closing successful short sale transactions. Don't let inexperience impede the closing process. Let my 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 probably take longer than a typical real estate transaction. Be informed that most 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 sale terms. A lot of the time your offer will go before a committee for approval which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are normally not up for negotiation when buying a short sale. The lender will be selling the property as seen which means the lender will not be paying for repairs. Be sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. When I write an offer, I will be looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the inspection results.