What is a Short Sale? Pros and Cons of buying a Short Sale Property

Anchorage, Alaska Real Estate


What is a Short Sale?

A short sale is when the proceeds of a property is less than the lien amount. In other words, the proceeds of the sale fall short of the total amount owed to the bank (lien holder) and the lien holder agrees to release the real estate for the lesser amount because the homeowner cannot afford to pay the mortgage.  A short sale is often a popular alternative to foreclosure. Most short sales are done through a third party, usually a Real Estate Professional. In most short sale cases, homeowners are facing a financial hardship and have to prove their hardship to the lienholder.

 

Pros of a Buying a Short Sale:

-The biggest advantage of buying a short sale is PRICE. Short sale listings are typically listed below market value which provides a buyer great opportunity to purchase a home with intant equity.

-Short Sale Listings tend to be in better condition than Foreclosed Homes.

 

Cons of Buying a Short Sale:

-The biggest disadvantage of buying a short sale is TIME. Short sale buyers must be patient because third party (lienholder) approval is required after the seller has accepted an offer on their home.

-The Home is ususally sold As-Is.

-There are no guarantees that the home buyer will get to close on the home, even with months and months of waiting. 

 

Every short sale situation is unique and every negotiator for each short sale is unique so it's hard to predict the outcome of these sales.

The best way to go into buying a short sale is to NOT get emotionally attached to the home. And although I discourage my buyers from looking at a home purchase purely for financial reasons... it is almost encouraged to think of a short sale in that way.

Consider how much time your family has to wait on a home and how much time you consider reasonable. Never ever put your hopes on a short sale home. Once buyers get emotionally invested in a short sale, it can be hard to make pracitical decisions which can affect your ability to do what is best for your family.

 

Some questions to ask the listing agent:

1. How far along are you in the short sale process?

2. Has the bank approved a certain listing amount?

3. Has any paperwork been submitted to the bank?

4. Is there a foreclosure sale date set?

5. Is the seller willing to do repairs?

 

Good luck to you and your family in this exciting time in your life!!! Happpy Home Hunting!


If you or anyone you know is having trouble making their mortgage payments and would like to learn more about the SHORT SALE PROCESS, contact Vanna 907-720-4663. 

 

 

 

 

 

 

 

 

HOMES BY VANNA TEAM,

Anchorage Real Estate Specialist

907-720-4663

SEARCH FEATURED PROPERTIES, FORECLOSURES AND SHORT SALES



<!-- Facebook Badge START -->

Homes By Vanna: Anchorage Real Estate

Promote Your Page Too

<!-- Facebook Badge END -->
 
This post has been included in Alaska Real Estate News Anchorage County, AK Real Estate News Anchorage, AK Real Estate News
Post is included in group: Diary of a Realtor
Post is included in group: Dedicated Bloggers
Post is included in group: Club Chaos
Post is included in group: LATE NIGHT - EARLY MORNING AT ACTIVERAIN
Post is included in group: Almost Anything Goes

5 Comments on What is a Short Sale? Pros and Cons of Buying a Short Sale Property

JUN
12
374,253 Points 10 Featured Posts Outside Blog Hit Router Called Shot Master

Got to weigh the good and the bad. A great deal "may" be had but if it takes 9 months and drains all your joy and makes you want to pull your hair out at the end was it really worth it? Especially if you go through all that and then it still doesnt work out?

Beware these are by no means easy
8:56pm • #1
366,008 Points 17 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master

Good questions to ask the listing agent about their short sale -

I have 3 short sales in escrow, on the buyer side.

One buyer is very emotionally involved, has made some bad decisions, takes everything personally.  I worry about that one, because it matters to my buyer too much - it has been 7 months now, she still is not prepared if it fails.

Another is an investor, looking for a good deal - I think I worry much more than she does.

The 3rd is a single guy, looking for a fixer upper.  It would be a good investment, and he would enjoy fixing it up.

All have different motivations, and different ways of looking at the transaction.
9:10pm • #2
879,394 Points 10 Featured Posts Attended Rain Camp Called Shot Master

Vanna, short sales are good for those who can wait - and that's something I feel buyers are afraid of.

Thanks for sharing your knowledge about the short sales.
9:10pm • #3
JUN
13
Outside Blog

David, You're right. A lot of times the bad outweighs the good in short sale situations.

 

Virginia, good luck with your short sale transactions!

 

Praful, You are right... short sales are for a select few and definitely not for those in a hurry.

 

 
6:02pm • #4
JUN
15
Called Shot Master

Short sales are a challenge.  It sure feels great each time we close one! Have a great weekend.
11:32am • #5


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Agentphoto2 Rainmaker_large

Vanna Siackhasone Anchorage Real Estate 907-720-4663

Anchorage, AK

More about me…

Keller Williams Realty 907-720-4663

Address: 101 W. Benson Blvd Suite 503, Anchorage, AK, 99503

Office Phone: (907) 720-4663

Cell Phone: (907) 720-4663

Email Me

Anchorage Real Estate. Anchorage, Alaska is where I live, work and play. Anchorage is a city of approximately 170,000 people. Anchorage is a beautiful place to live. The scenery and wildlife cannot be beat, the people are friendly, and where else can you hunt, mountain bike, hunt, hike, and fish less than thirty minutes away? I help home buyers and sellers navigate the world of Real Estate. From start to finish, I am involved in the Real Estate Transaction. Call 907-720-4663 for all your Anchorage Real Estate needs.


Listings

Links

Archives

RSS 2.0 Feed for this blog