Looking to buy a short sale?
Can I get a bargain on a short sale?
The short answer is "sometimes". Often times people hear the term "short sale" and instinctively think of a seller that is in default and needing to sell their home quickly to avert further financial problems. This is occasionally the case and can be an opportunity for a buyer to make the most of another's misfortune. In contrast, a lender may consider a short sale even if the seller is current, but property values have fallen. In these instances the reduced price may in fact be in line with true market values instead of below.
Are you ready to buy a short sale property?
- Always do your research before making any offers. Using a qualified real estate professional from McElroy & Associates to support your research of a property will help you make informed 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. Acquiring this data can help you decide how much to offer.
Hire a real estate agent with short sale experience. McElroy & Associates can assist you in expediting the transaction and ensure that you're protected. Don't let inexperience impede the closing process. Let my experience and knowledge work for you.
- Even with an experienced real estate agent and under the best circumstances, buying a short sale property will probably take longer than a typical real estate transaction. Be informed that a majority of short sales will not close in 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 go before a committee to approve, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are usually not negotiable when working with a short sale. The lender will be selling the property just the way it is which means the lender will not be paying for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At McElroy & Associates, when I write an offer, I am looking out for your interests first and will always advise you to make your offer contingent upon the outcome of the inspections.