With the savings opportunity offered by short sale properties, a lot of home buyers and real estate investors have started considering these homes a worthwhile investment. If you are among these people, you need to know short sale transactions are different.
To help you decide if this sort of investment is for you, ask yourself the following questions:
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1. Do you have a deadline in terms of moving into a home? – If you are hoping to move into a home at a particular date, you need to understand short sales usually take longer time and you might find your plans in an uproar if the transaction is not closed according to your schedule. If you have a deadline, then this type of home may not be for you.
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2. Are you prepared to increase your offer? – Typically, the short sale offer price is not accepted since the lender would naturally want more. You have to be ready to agree to the counter offer and to be able to do so, you need counsel from a reliable short sale Realtor regarding the recent home sales.
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3. Are you willing to pay for repairs? It would be wise to accept the fact the short sale property may be in need of some repair. Do you have the budget for such costs. Also, accept that banks will not likely shoulder the repair costs considering they are trying to cope with the losses incurred due to mortgage default.
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4. Are you willing to give up control? Again, the lender will need to approve the short sale offer and agree to the entire proposal. This means, as the buyer, you will not be able to dictate much. If you think this is a bit impersonal, then it is not for you.
An experienced short sale Realtor will also most likely ask you these questions to help you determine if you can move forward with the transaction. It is best you answer them truthfully in order to avoid wasting time.
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