When a homeowner owes more on their home than its value, they can sometimes get the lender to agree to a short sale, whereby the lender consents to release the mortgage for an amount less than what's due.
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Are they good deals?
Every now and then a good deal will come along. Most people hear the term "short sale" and instinctively think of a seller that is in trouble and must sell their home fast to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to do well from another's misfortune. More commonly, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In these cases the discounted price may in fact be in line with actual market values rather than below.
How do I buy a short sale?
Always do your homework before making any offers. Using a knowledgeable real estate agent from Keller Williams Realty to help you research a property can help you make educated 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. Locating this info can help you determine how much to offer.
Hire an agent with short sale knowledge. The real estate agents at Keller Williams Realty can aid you in expediting the transaction and make sure you're protected. Don't allow inexperience to delay the closing process. Let our experience and knowledge work in your favor.
Even in the best of situations and with an experienced real estate agent, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that a majority of 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. A lot of the time your offer will be seen by a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are typically not up for negotiation when working with a short sale. The lender will sell the property as seen which means the lender will not be paying for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Keller Williams Realty, 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 results of the inspections.
If you're ready to buy, whether it be a short sale or a typical home sale, Keller Williams Realty can help. Use our experience and knowledge of real estate to make sure that you're getting a fair deal and are protected during the whole transaction.
