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Are You Ready to Buy A Short Sale?

Posted by on Jul 25, 2013

Are You Ready to Buy A Short Sale?

Are short sales bargains? Sometimes. Often times people hear the term “short sale” and instinctively think of a seller that is in financial trouble and needs to sell their house promptly to avert further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another’s misfortune. More commonly, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In cases such as these the “bargain” price may in fact be consistent with actual market values, not below. What’s involved in buying a short sale? Before you make any purchase offers, do your homework. Using a knowledgeable real estate agent from Benchmark Realty to support your research of a property can help you make informed decisions. We can help find out to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Acquiring this information can help you make a decision about how much to offer. Use a real estate agent with short sale knowledge. The real estate agents at Benchmark Realty can assist you in expediting the transaction and make sure you’re protected. Don’t permit inexperience to impede the closing process. Let our experience and knowledge work for you. Even with an experienced real estate agent and under the best of situations, buying a short sale property will probably take longer than a typical real estate transaction. Be informed that most short sales will not close in 30 days or less. Remember that you’re not only having to satisfy the seller, but the lender must also agree to the terms of the sale. A lot of the time your offer will be presented to a committee to approve, which will add time – sometimes even 2 to 3 months. Home protection warranties, buyer credits and allowances, and closing cost concessions are typically not negotiable when buying a short sale. The lender will sell the property “as is” which means the lender will not be paying for repairs. Be sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Benchmark Realty, when I write an offer, I’m looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the results of the inspections....

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