Short Sale Homes
A property being short-sold is one being sold for less than the debt the current owner owes on the property. The process is ideally better for both the bank and the homeowner, not to mention the buyer too as well. While avoiding a number of fees, the bank can sell a home that is worth less than the amount the homeowner owes them. The homeowner can “escape” a loan that they can no longer pay while avoiding damage to their credit history. Lastly, the buyer can purchase a home at a discount. Though the short-sale process may seem beneficial to all of the parties involved, there are a few considerations that the buyers of short-sale homes should keep in mind before making their purchase.
Closing Takes Time
Short-sale homes frequently do not close for a variety of reasons, and when closing the process can take months. Due to the discount offered during short-sale, many banks do not want to accept the price the home is being sold for and will not approve the sale. A real estate agent will be able to keep a potential buyer informed of the home’s status during the short-sale process.
The short-sale process can be tricky, and having people who are inexperienced in the process can make it much more difficult. A buyer will want to research the agents and companies involved to be sure that they have completed short-sale transactions in the past. Otherwise, the short-sale may not go through, and the buyer might find that they wasted their time.
A buyer is not privy to the amounts other buyers are offering for the short-sale home, but they can ask how many offers have been made on the house. Understanding their competition will allow a buyer to gauge interest in the home and decide how much they’re prepared to offer. It can also help determine if they are willing to compete with other offers that have been made. Time is of the essence, and the more offers that a home has, the higher the purchase price will be.
While you may feel you can get a good deal on a short sale home, keep in mind that these types of home sales are not without their challenges. It may be beneficial in the long run, but remember it might be a good idea to hold off on getting your hopes up in this scenario.