Ready to buy a short sale?
|If a seller owes more on their property than its value, it's becoming increasingly common for the lender to agree to a short sale, whereby the lender consents to release the mortgage for an amount less than what's due. If you have any questions about real estate in the South Bay contact me here or e-mail me.|
Can I get a good deal on a short sale?Occasionally. Many people hear the phrase "short sale" and routinely think of a seller that is insolvent and needing to sell their residential or commercial property quickly to avert further financial problems. This is occasionally 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 depreciated. In cases such as these the "bargain" price may in fact be closer to current market values instead of below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using an experienced real estate professional from Kivett Realty to help you research a property can help you make educated decisions. I can help discover to whom the property is titled, the balance still 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.
Get a REALTOR® with short sale experience. As the Real Estate Broker at Kivett Realty, I can assist you in expediting the transaction and make sure you're protected. Don't let inexperience hold up the closing process. Put my 30 plus years of real estate experience with both residential and commercial properties to work for you.
- Even with an experienced real estate broker and under the best of situations, buying a short sale property will usually take longer than a typical real estate transaction. Be aware that many short sales will not close in 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the discounted price. A lot of the time your offer will be presented to a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
- Seller repairs, buyer credits and allowances, and closing cost concessions are not as negotiable when dealing with a short sale. The lender is most often selling the property as seen which means the lender will not be paying for repairs. Make sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Kivett Realty, when we write an offer, we will be looking out for your interests first and foremost and will always suggest that you make your offer contingent upon the outcome of the inspections.