I’m hoping that the collective wisdom of all of the experienced people here can help me. I'm a licensed broker in Michigan, but I don't know much (almost nothing) about short sales.
My wife and I are strongly thinking about buying a bigger house in our same neighborhood (located in Farmington Hills, Michigan). We looked at four houses, including one that is a short sale. We really like the short sale house. There is already one offer on the short sale house, but the selling agent said that the bank is still entertaining offers.
I very little about short sales, so I have several questions. Can anyone help?
- Do banks in short sale situations look more favorably on a 100% cash offer as opposed to financing? I’m wondering whether my offer would be looked at more favorably if my offer was all cash. I'd like to make my offer look more favorable than the other offer.
- Do I need to put an earnest money deposit down with my offer or can I say that I’ll put my earnest money down upon acceptance? If so, would it help to offer a large earnest money deposit upon acceptance to get the bank’s attention? I’d hate to have a large earnest money deposit tied up for months while the short sale slowly works its way through the bank before the bank accepts the offer. I don't mind putting down the money once the offer is accepted. Any thoughts?
- I’ve heard that some homeowners in short sale transactions strip their homes before they vacate and take everything from appliances to door knobs to cabinets to toilets, etc. Is there any way to protect myself from that happening in the purchase agreement? Does anyone have any recommended language?
- There were a few pieces of furniture that are in the house that seemed to fit certain rooms very well (e.g., a beautiful desk in the office). Is there a way to put that in the purchase agreement or would I need to negotiate separately with the current owner? I'm not sure about this in a short sale situation.
- Is there any disadvantage to buying a home through a short sale?
Any thoughts or comments would be much appreciated!!!! Thank you!!