Want to make a deal on a short sale?

Are short sales bargains?

From time to time, yes. Many people hear the term "short sale" and instinctively think of a seller that is in default and needs to sell their home quickly to avert further financial problems. This is sometimes the case and can be an opportunity for a buyer to take advantage of another's misfortune. Alternatively, a lender may consider a short sale even if the seller is current, but property values have declined. In these cases the discounted price may in fact be closer to true market values rather than below.

What's involved in buying a short sale?

• Always do your research before making any offers. Using a qualified real estate professional from FirstPoint Real Estate to assist you with researching a property can help you make informed decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Finding this data can help you make a decision about how much to offer.

• Get a real estate professional with short sale knowledge. FirstPoint Real Estate can assist you in expediting the transaction and ensure that you're protected. Don't allow inexperience to impede the closing process. Let my experience and knowledge work for you.

• 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 the customary 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. Commonly, your offer will be sent to a committee for approval, which will add time - sometimes even 2 to 3 months.
• Home warranties, buyer credits and allowances, and closing cost concessions are generally not negotiable when working with a short sale. The lender is selling the property as seen which means the lender will not be paying for repairs. Be sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At FirstPoint Real Estate, when I write an offer, I'm looking out for your interests first and will always suggest that you make your offer contingent upon the outcome of the inspections.