Short Sales, Part 2: Working with a Short Sale Expert

Continued from Short Sales, Part 1: Taking Advantage of the Buyer's Market

Why Work with a Short Sale Expert?

When it comes to purchasing short sales, INFORMATION IS KEY. Work with an agent and company that is experienced in short sales to maximize your chance of a smooth, successful transaction. An experienced knowledgeable real estate agent can give you a competitive edge when it comes to finding the right home in the following ways:

1. Shorter Escrow Periods
As you may know, short sales often require much longer escrow periods, sometimes between 3-6 months. This is a result of a large amount of paperwork, the constant back and forth negotiations, and the delays in processing from the overload of cases banks must deal with. A specialist can help speed the process along, so you have a more predictable closing date.

2. Negotiations
Armed with local market expertise and detailed knowledge about the comparable sales in the area, an experienced agent can properly assess the risk for the bank if they choose to foreclose in a changing market. Using this information, the agent has more negotiation power through an ability to write stronger, more convincing offers. 

3. Exclusive Inventory
Agents who work with short sales often have information on off-market listings that can't be found on an MLS. They may be in contact with sellers may be facing financial difficulties but have not yet publicly listed their homes because he or she is still trying to avoid the sale or is in the process of preparing the home for sale.

Other Tips

1. Be Patient
Because short sales sometimes follow an unpredictable time line, they might not be suited for some buyers. For example they may not be suited for a buyer looking to move into a particular school district or a person relocating for a job. Short sales often require long periods of waiting and uncertainty so be patient.

2. Be Flexible with Location and Condition
In my local San Gabriel Valley real estate market, which includes both cities with higher end homes like Arcadia and San Marino and other cities with more moderately priced homes, short sales are still not common enough where buyers can choose their exact locations. Determine your goals for purchasing the home, whether its the school district for the kids, the nightlife, or being close to nature, and look in multiple cities fitting your criteria. Also be flexible with the condition of the home. Sometimes, homes are in excellent condition, but sometimes they aren't. Make sure to budget in any repairs or upgrades you plan to do and compare that to the post-remodel value of the home to make sure it's still a good buy.