Looking to make a deal on a short sale?
Are short sales good deals?
Every now and then a good deal will come along. Often times people hear the phrase "short sale" and routinely think of a seller that is in trouble and needing to sell their house promptly to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. Alternatively, a lender may consider a short sale even if the seller is current, but property values have depreciated. In these cases the "bargain" price may in fact be consistent with actual market values, not below.
How do I buy a short sale?
- Before you make any purchase offers, do your research. Using an experienced real estate agent from McElroy & Associates to assist you with researching a property can help you make informed decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Locating this information can help you determine how much to offer.
Hire a REALTOR® with short sale experience. McElroy & Associates can assist you in expediting the transaction and make certain you're protected. Don't let inexperience hold up the closing process. Put my knowledge and experience to 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. Know that many 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, which will add time - sometimes even 2 to 3 months.
- Home protection plans, buyer credits and allowances, and closing cost concessions are generally not up for negotiation when buying a short sale. The lender is selling the property just the way it is which means the lender will not be paying for repairs. Be sure to reserve the right to perform 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 will always recommend that you make your offer contingent upon the results of the inspections.