Ready to purchase a short sale?
|If a seller owes more on their home than its value, they can sometimes get the lender to agree to a short sale, whereby the lender agrees to release the mortgage for an amount less than what's owed.|
Are short sales good deals?Every now and then a good deal will come along. Most people hear the phrase "short sale" and routinely think of a seller that is insolvent and must sell their house fast to avert further financial problems. This is at times 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 these cases the "bargain" price may in fact be closer to actual market values rather than below.
What's involved in buying a short sale?
- Before you make any purchase offers, do your homework. Using a qualified real estate agent from Tampa Bay Real Estate to support your research of a property can help you make informed decisions. We can help reveal to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining these facts can help you make a decision about how much to offer.
Hire a real estate professional with short sale expertise. The real estate agents at Tampa Bay Real Estate can aid you in expediting the transaction and ensure that you're protected. Don't permit inexperience to hold up the closing process. Put our experience and knowledge to work in your favor.
- Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Know that a majority of short sales will not close in less than 30 days. Remember that you're not only having to satisfy the seller, but the lender must also agree to the terms of the sale. In most cases your offer will go before 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 typically not negotiable when dealing with a short sale. The lender will sell the property "as is" which means the lender isn't going to pay for repairs. Make sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Tampa Bay Real Estate, when I write an offer, I am looking out for your interests first and foremost and will always advise you to make your offer contingent upon the inspection results.