When a lender and a homeowner agree to release a mortgage for an amount less than what's owed on the property, it's called a short sale.
Can I get a good deal on a short sale?
From time to time, yes. Often times people hear the words "short sale" and routinely think of a seller that is in default and must sell their home quickly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In these cases the discounted price may in fact be closer to actual market values instead of below.
How do I buy a short sale?
Always do your research before making any offers. Using an experienced real estate agent from Sailing Home Realty, Corp. to support your research of a property will help you make knowledgeable decisions. We can help reveal to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Locating this info can help you decide how much to offer.
Use an agent with short sale experience. The real estate agents at Sailing Home Realty, Corp. can aid you in expediting the transaction and make sure you're protected. Don't let inexperience impede 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 probably take longer than a typical real estate transaction. Know that many short sales will not close in 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. Commonly, your offer will be seen by a committee to approve which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are typically not negotiable when dealing with a short sale. The lender is selling the property just the way it is which means the lender isn't going to pay for repairs. Be sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Sailing Home Realty, Corp., when we write an offer, we're looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the outcome of the inspections.
When you are ready to buy, whether it's a short sale or a typical home sale, Sailing Home Realty, Corp. is here to help. Utilize our experience and knowledge of real estate to feel confident you are getting a fair deal and are protected during the entire purchase transaction.
Sailing Home Realty, Corp. 1025 Atlantic Ave Baldwin, NY 11510-4247
