I am not going to discount the difficulty of purchasing a Short Sale. However, when you have a good Real Estate Broker working for you it is not your hardship to bear. With a little patience you may find yourself owning a home at rock bottom price.
There are many causes behind the short sales that we are seeing on the market today, however, there is one truth to always keep in mind: Lenders do not want to see the home go into foreclosure. This simple fact is what allows a skilled negotiator to assist you in purchasing the home for a discounted price. However, there are also many misconceptions to keep in mind about short sales that you must be aware of.
•· Every short sale is NOT a good deal: just because the seller is selling the home for less than they owe on it does not mean that you are purchasing the home at a discounted price. It is important that you hire a Real Estate Broker that is looking after your personal needs not their own commission.
•· Many short sales are in poor condition: I have heard over and over that agents tell people to stay away from short sales because there is no warranty and the house is falling down. This is not always the case especially in this market. This may be the case with a foreclosure as they often sit unattended for many months before the bank lists the home, however, short sales have been occupied. Additionally, many of the short sales that we are seeing today are the result of over financed homes and devaluating property values; not neglect.
•· Hard cash talks: surprisingly, cash offers do not make a difference in short sales. The lender is looking at the bottom line and if it does not balance they will not accept the sale. However, lenders may want to see a substantial down payment to prove stability of the buyer.
•· Sellers are not motivated: My experience has been that sellers are extremely motivated in a short sale. Sellers want to be rid of the stress and anxiety caused by the potential of losing their home.
The bottom line of purchasing a short sale is that you must be patient as they often take several months to complete and have a strong Real Estate professional working for YOUR best interests. I would love to be the Broker to work with you through the process!