What You Need To Know About Buying Short Sales
Before you get too excited when you spot a short sale home that interests you, it is important to know just what you are diving into. Ideally, you are actually going to want to pick up the phone and give a real estate agent a call. This is because it is a good idea to have a professional do a little research on the short sale before you commit to a purchase.
The unfortunate truth is that in a lot of real estate markets there are fewer than ten short sales that actually close. This is because a not all homes that are listed as short sales are actually for sale. This is partly due to the fact that the home is subject to being approved by a lender and partly because it may not sell for the price it is actually listed for.
Assuming a short sale will actually close it is a process that can be drawn out anywhere from 2 to 4 months. So purchasing a short sale home is not ideal if you are in a rush to find somewhere to move. Furthermore, a lot of short sale homes are priced so low that your seller’s bank is never going to accept an offer on it. In order to get an offer on a short sale home accepted, you are going to need to offer what is close to the market value of the home regardless of what the home is listed at. If you are not prepared to pay what the value of the home is, then short sale homes are not for you.
You are also going to want to get your real estate agent to find out how much money is owned against the house you are interested in buying. If the home as a second and third mortgage taken out on it, you are just going to want to walk away and find something else.
Investigate the track record of the seller who has posted the short sale home. If you find out that this person has never actually closed a deal on any of their short sale homes, they are not worth your time. Keep in mind, there is only so much that your real estate agent is going to be able to do when it comes to a short sale. For example, they are not going to be able to talk to the bank for you.