Want to make a deal on a short sale?
Are short sales bargains?
Occasionally. Often times people hear the phrase "short sale" and routinely think of a seller that is insolvent 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 make the most of another's misfortune. Alternatively, a lender may consider a short sale even if the seller is current, but property values have depreciated. In cases such as these the discounted price may in fact be closer to current market values instead of below.
How do I buy a short sale?
- Prior to making any purchase offers, do your homework. Using a knowledgeable real estate professional from McElroy & Associates to support your research of a property can help you make educated decisions. We can help reveal to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this information can help you decide how much to offer.
Use an agent with short sale experience. McElroy & Associates can assist you in expediting the transaction and make certain you're protected. Don't let inexperience hinder the closing process. Put my knowledge and experience to work for you.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Know that most short sales will not close in less than 30 days. Remember that you're not only having to get approval from the seller, but the lender must also agree to the sale terms. Commonly, your offer will go before a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are typically non-negotiable when dealing with a short sale. The lender will be selling the property "as is" which means the lender won't be paying for repairs. Make 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'm looking out for your interests above all else and will always recommend that you make your offer contingent upon the outcome of the inspections.