Short Sales

What is a Short Sale?

A short sale happens when the amount of the outstanding loans are greater than the amount for which the home could sell. This could be caused by many causes, but frequently is a result of a rapidly declining housing market.

For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.

Can I get a bargain on a short sale?

Occasionally. Often times people hear the phrase "short sale" and routinely think of a seller that is in default and must sell their property 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. More commonly, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have depreciated. In cases such as these the discounted price may in fact be closer to actual market values, not below.

What's involved in buying a short sale?

Always do your research before making any offers. Using a qualified real estate professional from The Spies Team to support your research of a property can help you make educated decisions. We can help discover to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Getting this data can help you decide how much to offer.
Get an agent with short sale experience. The real estate agents at The Spies Team can help expedite the transaction and make sure you're protected. Don't let inexperience slow down the closing process. Put our experience and knowledge to work in your favor.

Even with an experienced real estate agent and under the best circumstances, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that many short sales will not close in less than 30 days. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. Commonly, your offer will be sent to a committee for approval which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are usually not up for negotiation when working with a short sale. The lender is selling the property just the way it is which means the lender will not be paying for repairs. Make sure to reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At The Spies Team, when we write an offer, we are looking out for your interests first and will always advise you to make your offer contingent upon the inspection results.
If you are ready to buy, whether it is a short sale or a typical home sale, The Spies Team is here to help. Use our experience and knowledge of real estate to be confident that you're getting a fair deal and are protected during the entire purchase transaction.

Need to short sell your home?

What is a short sale? A short sale happens when the amount of the outstanding loans are greater than the amount for which the home could sell. This could be caused by many causes, but frequently is a result of a rapidly declining housing market.

For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.

What steps do I take in a short sale?

First, get an idea of the true market value of your home. A qualified REALTOR®, like those at The Spies Team, will be able to give you a realistic idea of what your home will possibly sell for based on a market analysis. Beware of websites where a computer estimates your home's market value since they may not have complete information or know important things like neighborhood trends and current listings.

Next, calculate your closing costs. The experienced agents at The Spies Team will consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.

Finally, get in touch with your lender and tell them of the situation. They may even have a special department that manages short sales. Ask about their particular steps. Some lenders will be more able to work with you than others. They may be able to reduce how much you owe or make other arrangements. Your lender will have to give approval for the final sale.