Ready to buy a short sale?
Can I get a bargain on a short sale?
Sometimes. Most people hear the phrase "short sale" and instinctively think of a seller that is in financial trouble and needs to sell their property quickly to prevent further financial problems. This is sometimes the case and can be an opportunity for a buyer to make the most of another's misfortune. More commonly, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have fallen. In these cases the "bargain" price may in fact be closer to true market values instead of below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using a knowledgeable REALTOR® from McElroy & Associates to support your research of a property can 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. Having this information can help you determine how much to offer.
Use a real estate agent with short sale knowledge. McElroy & Associates can help expedite the transaction and make certain you're protected. Don't permit inexperience to delay the closing process. Let my experience and knowledge work for you.
- Even in the best of situations and with an experienced real estate agent, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that a majority of short sales will not close in the customary 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the discounted price. A lot of the time 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 is selling the property "as is" which means the lender won't be paying for repairs. Make sure to 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'm looking out for your interests above all else and will always advise you to make your offer contingent upon the inspection results.