Looking to purchase a short sale?
Are they good deals?
The short answer is "sometimes". Most people hear the words "short sale" and automatically think of a seller that is in default and needing to sell their house promptly to avert further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on another's misfortune. In contrast, 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 reduced price may in fact be in line with actual market values, not below.
What's involved in buying a short sale?
- Always do your homework before making any offers. Using a knowledgeable REALTOR® from McElroy & Associates to assist you with researching a property will help you make knowledgeable 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. Having this data can help you make a decision about how much to offer.
Hire a real estate professional with short sale expertise. McElroy & Associates can assist you in expediting the transaction and make sure you're protected. Don't allow inexperience to impede the closing process. Let my 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 many short sales will not close in less than 30 days. 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 be seen by a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
- Home protection plans, buyer credits and allowances, and closing cost concessions are normally not up for negotiation when working with a short sale. The lender will be selling the property as seen which means the lender won't be paying for repairs. Be sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At McElroy & Associates, when I write an offer, I am looking out for your interests above all else and will always suggest that you make your offer contingent upon the inspection results.