Ready to buy a short sale?
|A short sale means the homeowner's lender has agreed to get a reduced sum to release a mortgage.|
Are they good deals?From time to time, yes. Often times people hear the words "short sale" and instinctively think of a seller that is in default and needing to sell their home fast to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have declined. In these instances the "bargain" price may in fact be closer to true market values rather than below.
How do I buy a short sale?
- Before making any purchase offers, do your homework. Using a qualified REALTOR® from Fidelity Realty Group to help you research a property will help you make educated decisions. We can help discover to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Locating these facts can help you make a decision about how much to offer.
Hire a real estate professional with short sale experience. The real estate agents at Fidelity Realty Group can help expedite the transaction and make certain you're protected. Don't allow inexperience to hold up the closing process. Let our experience and knowledge work for you.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will probably take longer than a typical real estate transaction. Know that most short sales will not close in 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the discounted price. In most cases your offer will be sent to 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 normally not up for negotiation when dealing with a short sale. The lender is selling the property just the way it is which means the lender isn't going to pay for repairs. Always reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Fidelity Realty Group, when we write an offer, we are looking out for your interests first and foremost and will always advise you to make your offer contingent upon the outcome of the inspections.