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. If you have any questions regarding real estate in the bay area, California, contact me here or e-mail me.
Are short sales bargains?
The short answer is "sometimes". Many people hear the phrase "short sale" and automatically think of a seller that is in financial trouble and needs to sell their house fast to avert further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. In contrast, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have fallen. In these instances the reduced price may in fact be in line with true market values, not below.
Are you ready to buy a short sale property?
Always do your research before making any offers. Using a qualified real estate professional from Better Homes Realty to support your research of 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. Locating this information can help you make a decision about how much to offer.
Use a REALTOR® with short sale experience. The real estate agents at Better Homes Realty can aid you in expediting the transaction and ensure that you're protected. Don't permit 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 informed that a majority of short sales will not close in 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the discounted price. Commonly, your offer will be presented to a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home protection warranties, buyer credits and allowances, and closing cost concessions are usually not negotiable when buying a short sale. The lender will sell the property as seen which means the lender will not be paying for repairs. Make sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Better Homes Realty, when we write an offer, we're looking out for your interests above all else and will always advise you to make your offer contingent upon the inspection results.
When it's time to buy, whether it is a short sale or a typical home sale, Better Homes Realty is here to help. Apply our experience and knowledge of real estate to be confident that you are getting a fair deal and are protected during the entire purchase transaction.
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