Looking to make a deal on a short sale?
Can I get a good deal on a short sale?
From time to time, yes. Many people hear the term "short sale" and automatically think of a seller that is insolvent and must sell their house promptly to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to make the most of another's misfortune. Alternatively, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In these instances the reduced price may in fact be in line with actual market values rather than below.
Are you ready to buy a short sale property?
- Always do your research before making any offers. Using an experienced REALTOR® from McElroy & Associates to assist you with researching a property will help you make educated decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Finding this information can help you determine how much to offer.
Hire a REALTOR® with short sale expertise. McElroy & Associates can help expedite the transaction and ensure that you're protected. Don't permit inexperience to slow down the closing process. Let my experience and knowledge work in your favor.
- Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Know that a majority of short sales will not close in the customary 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the discounted price. Commonly, your offer will be sent to 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 buying a short sale. The lender will be selling the property "as is" which means the lender isn't going to pay for repairs. Be sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At McElroy & Associates, when I write an offer, I'm looking out for your interests above all else and will always advise you to make your offer contingent upon the inspection results.