Buying Short Sales
Are short sales good deals?
From time to time, yes. Most people hear the phrase "short sale" and routinely think of a seller that is insolvent and must sell their property quickly to avert further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. Alternatively, a lender may consider a short sale even if the seller is current, but property values have declined. In cases such as these the reduced price may in fact be consistent with current market values instead of below.
What's involved in buying a short sale?
- Prior to making any purchase offers, do your research. Using a knowledgeable REALTOR® from The Spies Team to assist you with researching a property will 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. Locating this data can help you make a decision about how much to offer.
- Hire a real estate professional with short sale knowledge. The real estate agents at The Spies Team can help expedite the transaction and ensure that you're protected. Don't allow inexperience to 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 of situations, buying a short sale property will generally take longer than a typical real estate transaction. Be informed that most 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. It's not uncommon that your offer will be seen by a committee for approval which will add time - sometimes even 2 to 3 months.
- Home protection warranties, buyer credits and allowances, and closing cost concessions are usually not up for negotiation when dealing with a short sale. The lender will be selling the property "as is" which means the lender isn't going to pay 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're looking out for your interests first and will always recommend that you make your offer contingent upon the outcome of the inspections.
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 make sure that you are getting a fair deal and are protected during the full deal.