Looking to purchase a short sale?

Are short sales bargains?

Every now and then a good deal will come along. Many people hear the words "short sale" and instinctively think of a seller that is in financial trouble and needs to sell their house fast to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current, but property values have declined. In these cases the reduced price may in fact be consistent with actual market values, not below.

What's involved in buying a short sale?

• Always do your research before making any offers. Using a knowledgeable real estate professional from FirstPoint Real Estate to assist you with researching a property will help you make educated decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Locating this info can help you make a decision about how much to offer.

• Hire a real estate agent with short sale experience. FirstPoint Real Estate can help expedite the transaction and make certain you're protected. Don't allow inexperience to slow down the closing process. Let my experience and knowledge work in your favor.

• 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 aware that many 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 sale terms. A lot of the time your offer will be seen by a committee for approval, which will add time - sometimes even 2 to 3 months.
• Home protection warranties, buyer credits and allowances, and closing cost concessions are generally not negotiable when buying a short sale. The lender is selling the property "as is" which means the lender will not be paying for repairs. Be sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At FirstPoint Real Estate, when I write an offer, I will be looking out for your interests first and foremost and will always suggest that you make your offer contingent upon the results of the inspections.