Ready to purchase a short sale?
Are they good deals?
From time to time, yes. Often times people hear the term "short sale" and instinctively think of a seller that is insolvent and must sell their home quickly to avert further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. In contrast, a lender may consider a short sale even if the seller is current, but property values have declined. In these instances the discounted price may in fact be consistent with current market values, not below.
How do I buy a short sale?
- Always do your homework before making any offers. Using an experienced real estate agent from McElroy & Associates to support your research of a property can help you make knowledgeable decisions. We can help learn to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Getting this data can help you decide how much to offer.
Hire a real estate agent with short sale knowledge. McElroy & Associates can assist you in expediting the transaction and ensure that you're protected. Don't let inexperience slow down the closing process. Put my experience and knowledge to work in your favor.
- Even in the best of situations and with an experienced real estate agent, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that a majority of 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. It's not uncommon that your offer will be presented to a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
- Home protection warranties, buyer credits and allowances, and closing cost concessions are usually non-negotiable when working with a short sale. The lender is selling the property as seen which means the lender isn't going to pay for repairs. Be sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At McElroy & Associates, when I write an offer, I will be looking out for your interests first and foremost and will always suggest that you make your offer contingent upon the results of the inspections.