Buying a Short Sale Home
Welcome future homeowner! If you have been hearing a lot about short sales lately, that`s because many homeowners who are struggling to afford their monthly mortgage payments are now entering into a short sale. A short sale occurs when a mortgage lender agrees to take a lesser amount than what is owed on the home in order to avoid foreclosure. Many of the homes on the market now are short sale homes. Buyers do need to know the pros and cons about buying a short sale home on the market. A competent broker is your best source for finding short sales within your area and helping you work with the seller`s bank to make a short sale offer. Let`s look at the advantages and drawbacks of the short sale from a buyer`s perspective.
Short Sale Advantages
Prices for short sales are typically lower than other comparable homes within the market. This is because the lender needs to sell the house in order to recoup the money they loaned to buy the home, and the seller wants to sell the house to avoid foreclosure. The biggest advantage to the short sale is getting a bargain on your home. Short sale process takes a longer time to complete, many buyers put in an offer on a short sale but many walk away during the process. If you are willing to wait, this can be an advantage.
Short Sale Disadvantages
The biggest disadvantage to the short sale is that they do take several months in many instances to complete, and that during this time period, other buyers may become interested in the short sale property, too. Also, most of the short sale process is dependent upon certification by the lender. Depending on the bank and state, many lenders are not willing to accept low offers on the property. Buyers are often turned down if the offer is not up to the expectations of the lender, even when the listed price for the house has been met. Many times, a short sale listing price is ridiculously low, and the lender ends up now approving it, which is a frustrating and misleading to potential buyers who are looking for a short sale. The low price usually creates multiple offers. This can be frustrating for serious home buyers. Short sale properties are usually sold `as is`. Of course, this does not waive the buyer`s right to inspect the property and walk away from the escrow if needed.
If you are considering buying a short sale property and need guidance, or if you are a homeowner considering short sale of your own property, you need to talk with a licensed broker right away! Contact us to find out how we can guide you through the short sale process with ease. Call or contact us now!