When a lender and a seller agree to release a mortgage for an amount less than what's owed on the property, it's called a short sale.
Can I get a bargain on a short sale?
Occasionally. Many people hear the words "short sale" and automatically think of a seller that is in trouble and needing to sell their property quickly to prevent further financial problems. This is sometimes the case and can be an opportunity for a buyer to make the most of another's misfortune. In contrast, 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 rather than below.
How do I buy a short sale?
Always do your homework before making any offers. Using a qualified REALTOR® from Judy Fisher, REALTOR® to help you research a property can help you make knowledgeable decisions. We can help discover to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Having this info can help you make a decision about how much to offer.
Use an agent with short sale knowledge. The real estate agents at Judy Fisher, REALTOR® can help expedite the transaction and make sure you're protected. Don't permit 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 probably take longer than a typical real estate transaction. Know that most short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. In most cases your offer will be sent to a committee to approve which will add time - sometimes even 2 to 3 months.
Home protection warranties, buyer credits and allowances, and closing cost concessions are normally not up for negotiation when working with a short sale. The lender will sell the property just the way it is which means the lender won't be paying for repairs. Make sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Judy Fisher, REALTOR®, when we write an offer, we will be looking out for your interests first and will always recommend that you make your offer contingent upon the outcome of the inspections.
If you're ready to buy, whether it's a short sale or a typical home sale, Judy Fisher, REALTOR® is available for you. Use our experience and knowledge of real estate to be certain you're getting a fair deal and are protected during the full purchase transaction.
