Some Short Sale Buyers Are Missing The Boat...so to speak :)
Lately, we've come across some short sale buyers that have miss-conceptions about this specific type of real estate transaction that differs from a traditional property purchase and would like to share these...
- Short Sales are not Fire sales....the banks have a bottom line.
Sometimes buyers have miss-conceptions that they can bid very,very low and ask for even more ( i.e. seller concessions) on a listing that is already priced less than what is owed on the note. This is not so.
- Lenders wait around a long time for the best short sale offer to come in before they'll decide which one to choose.
Not so nowadays. It has been our experience recently that the time frame for some of these transactions is decreasing and if one reasonable offer comes in, they accept it and proceed to close.
.....one client insisted they had plenty of time to wait to write an offer ....just an hour later that very home was under contract with an excellent offer with hard to beat terms :0
- As a Buyer of a short sale you can wait to do your inspections or Appraisal until after the lender has approved the short sale...
THERE IS RISK involved with writing offers subject to lenders approval of a short sale.
Spending money up front on inspections or appraisals without even knowing if the short sale will be approved is part of the gamble.
Short sale properties are many times SOLD AS IS. The inspection is more of an FYI for the buyer, rather than a negotiating tool to get more $$ from the lender.
We recommend our buyers bring an inspector or contractor to the 2nd showing and do their due diligence up front... to check out the property thoroughly BEFORE WRITING an offer on a short sale or REO (foreclosed property), that way they have an idea of what they are getting into.
- The bank will be ready to close on the date the buyer puts in the contract.
IF YOU are a buyer with ANY type of time constraint for housing - maybe a short sale is NOT FOR YOU.
There could be delays in closing a short sale. That's why when we list short sales we take back up offers, in case the 1st buyer walks, there is a back up ready to move forward.
If you are a buyer looking to purchase a short sale or foreclosed property, using a REALTOR with a designation & experience in this specific type of Real Estate Transaction is vital to getting deals done!