A short sale happens when the homeowner's lender has agreed to collect a reduced sum to release a mortgage.
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Can I get a bargain on a short sale?
The short answer is "sometimes". Many people hear the term "short sale" and routinely think of a seller that is insolvent and needing to sell their home quickly to avert further financial problems. This is sometimes the case and can be an opportunity for a buyer to do well from 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 in line with true market values instead of below.
What's involved in buying a short sale?
Always do your research before making any offers. Using a qualified real estate professional from Wendy Carugno & Kathy Puschmann to help you research a property will help you make informed decisions. We can help find out to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this information can help you determine how much to offer.
Use a real estate agent with short sale knowledge. The real estate agents at Wendy Carugno & Kathy Puschmann can aid you in expediting the transaction and make certain you're protected. Don't let inexperience delay the closing process. Put our knowledge and experience to work for you.
Even in the best of situations and with an experienced real estate agent, buying a short sale property will usually take longer than a typical real estate transaction. Be informed that a majority of short sales will not close in less than 30 days. Remember that you're not only having to satisfy the seller, but the lender must also agree to the terms of the sale. Commonly, your offer will be sent to 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 usually not up for negotiation when working with a short sale. The lender is selling the property as seen which means the lender will not be paying for repairs. Always reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Wendy Carugno & Kathy Puschmann, when we write an offer, we will be looking out for your interests above all else and will always recommend that you make your offer contingent upon the inspection results.
If you're ready to buy, whether it be a short sale or a typical home sale, Wendy Carugno & Kathy Puschmann can help you. Utilize our experience and knowledge of real estate to feel confident that you are getting a fair deal and protect yourself during the entire purchase transaction.
