Short Sale Buying Guide
SHORT SALE BUYING GUIDE
READY TO MAKE A DEAL ON A SHORT SALE?
When a seller is upside down on their mortgage payments, they can sometimes get the lender to agree to a short sale, whereby the lender consents to release the mortgage for a sum less than what's owed. If you are interested in buying a short sale or have questions about real estate in or around Hampstead, Wilmington, Jacksonville, or Topsail Beach NC, contact REACH Properties today.
ARE SHORT SALES GOOD DEALS?
Sometimes. Many people hear the term "short sale" and automatically think of a seller that is insolvent and needing to sell their house fast to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to take advantage of another's misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In cases such as these the "bargain" price may in fact be closer to actual market values, not below.
ARE YOU READY TO BUY A SHORT SALE PROPERTY?
Always do your research before making any offers. Using a knowledgeable real estate professional from REACH Properties, and our wider sphere at Keller Williams Realty, to support your research of a property can help you make educated decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Finding this information can help you make a decision about how much to offer.
Get an agent with short sale expertise. The real estate agents at REACH Properties, and our wider sphere at Keller Williams Realty, can aid you in expediting the transaction and ensure that you're protected. Don't permit inexperience to impede the closing process. Let our experience and knowledge work for you.
Even with an experienced real estate agent and under the best circumstances, buying a short sale property will usually take longer than a typical real estate transaction. Be aware that a majority of 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 warranties, buyer credits and allowances, and closing cost concessions are normally not negotiable 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. Be sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Keller Williams Realty, when we write an offer, we're looking out for your interests first and foremost and will always suggest that you make your offer contingent upon the inspection results.