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Tips for Buying a Short Sale

By
Real Estate Agent

Short sales aren't for every buyer.  If you have a great deal of patience and don't have a short timeline for moving, a short sale may be a good way to find a great deal on a home.

Here are a few tips if you decide to consider a short sale:

  • Understand the Short Sale Process
  • Research Market Value (your Realtor can help with this)
  • Make an Offer somewhat below Market Value, but Not Ridiculously Low
  • Don't Expect Concessions or Repairs
  • Ensure that the Listing Realtor has Expertise with Short Sales
  • Expect Approval to Take 3-6 Mos., but be Ready if it Comes Sooner
  • Complete Financing & inspections Early

buying a houseIt's helpful to understand the basic process for short sales so you will have a better idea of whether things are going as expected & roughly how much longer it may take to get a decision from the lender. 

In most cases, the long wait is due to a heavy workload at the lender's end, but the process can be delayed by other factors such as the seller not providing required documents quickly or incomplete short sale packages sent to the lender by the Listing Agent. There may be other reasons for delays, but these are probably the most common.

There are no guarantees that the contract will be approved, but if the price is reasonable for a short sale  and the seller and listing agent are doing their part, chances are good that the lender will approve. It's disappointing for everyone when after months of work, the buyer walks away from the contract just before an approval is given, so unless you're willing to go all the way, it's better to leave short sales alone.

Comments (2)

Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

A great tutorial Colleen. It really is not as scary as a lot of people thing with the right steps known at the onset.

Mar 21, 2011 02:26 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

  I wish it were true in this market that "ask your realtor" would provide a good answer...sadly, too often not the case ..."The bank will take whatever you offer..." not a good answer.

Apr 07, 2011 12:33 AM