Alexandria Short Sales | Six Things You Need To Know If You're About To Buy One

Alexandria Short Sales | Six Things You Need To Know If You're About To Buy One

As an Alexandria VA listing agent, I list quite a few short sales, which in turns enables me to work with a lot of Alexandria VA homebuyers.

What I typically find is that most Alexandria VA homebuyers are excited when they see a short sale for the first time (especially one of my listings because they are usually well maintained).

Here are the top six things to consider when you are thinking about buying Alexandria VA short sales:

1.  You can't control how long it takes for the bank(s) to approve the short sale.  Are you currently renting? Be sure to review your lease to see what the penalty is for early termination.  Also, if your lease is ending, find out how if your rent changes if you continue on a month-to-month term.  Most importantly, be sure you know how much notice you need to provide your landlord.  When an Alexandria VA short sale is approved, the lender will likely require you to close within 30 days.

2. The seller will not make any repairs.  The bank will not make any repairs.  This is a tough pill for first-time buyers to swallow, especially if it is an obvious repair.  Most buyers can stomach cosmetic changes to suit their own personal tastes, but when the HVAC system doesn't work, or the hot water heater needs to be replaced, it causes a psychological brain freeze.  I've seen buyers spend $20,000 more for a comparable home that has updates, over a home that needs some repair work and a little TLC.  Keep your emotions in check when it comes to repairs.  Decide what your threshold is for repair work before you submit your offer.

3. Can you afford to pay your own closing costs?  With some of my most recent Alexandria VA short sale listings that have gotten approved, the bank has not been willing to pay closing costs for the buyer.  Remember that the bank is taking a loss on the sale, and is not obligated to the new buyer in any way.  If you are unable to afford your downpayment and closing costs, you may want to reconsider purchasing a short sale home.

4. You can't just cancel your contract at any time. There are certain periods during the transaction where the buyer may have the opportunity to void the contract.  But if the contingency period for the short sale approval has not passed, you may have to stick it out and wait. 

5. You may have to turn on the utilities to perform your home inspection. Because of the seller's hardship, it may not be financially possible to maintain the home and keep the utilities on.  If this is the case, you could be responsible for turning on the utilities before you even own the home, just to perfom an inspection.

6. If your offer is too low, or below market value, the bank may counter the sales price.  Yep, you've been waiting for three months, then you finally hear that the bank has approved the short sale, but they want more money.  "What!  I thought short sales were supposed to be a steal deal?!"  Once a short sale request has been made, the bank will hire an independent appraiser or real estate broker to perform a price opinion of the property (the bank may order more than one appraisal).  If the price opinion is higher than the contract sales price, then the bank may very well counter your offer.

Alexandria VA short sales are not always cut and dry.  There are many factors that will determine how long the approval will take, such as the number of banks involved, and how many parties need to grant the approval.  What I've learned is that Alexandria VA homebuyers need three things: time, patience, and money.  Otherwise, the short sale purchase may not be successful.

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Buying or Selling Real Estate in Del Ray or Old Town Alexandria VA? Looking for short sales in Alexandria Virginia? Contact Tamara Inzunza, Associate Broker of McEnearney Associates, Inc. Realtors to list and sell your home, or purchase a new home. I specialize in real estate homes for sale in the beautiful Alexandria VA communities of Old Town Alexandria, Del Ray, Kingstowne, and Manchester Lakes including condos, townhomes, and single-family homes for sale.

Call me at 703-623-8759.

Be sure to visit my website where you can Search MLS Listings of ALL Homes For Sale in Alexandria VA at www.MovingToNova.com/. If you're thinking about selling and would like to know how much your Alexandria VA home is worth, visit http://www.confidentialcma.com/ for a complimentary market analysis of your home. Not selling but curious about the homes for sale in your neighborhood, visit http://www.movingtonova.info/ for FREE Market Snapshot reports and stay informed whenever a home is listed or sold in your neighborhood.

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