Far fewer homes are short sales in the Arvada market(between Denver and Boulder) now than in the past few years. But there are still short sales to be found in every price range, and mostly in the entry price range.
I am about to embark on the home-shopping adventure with a young couple who might want to consider short sales. So I decided to gather my best short sale homebuying tips into one post for them. I will tell them the most pertinent facts when I meet with them, of course. But there's so much to remember that if they don't have a way to go back and review what I said, some of it will be lost.
If you want to know more about short sales, this post is for you, too! If you don't understand something or want more information, please feel free to comment on this post or call me at 720-353-8031, or email joetta.fort@gmail.com.
For even more information, click the links below.
1. Short sales are often the best deals out there. However, that tempting price can be an illusion. Short sales are often marketed at a price that is too far below the true value of the home. The bank that holds the mortgage WILL have an appraisal done before they decide whether or not to agree to the terms of your offer. If the price you offered is too low, they will either just say 'no', or they will come back with a higher price. Know the market value of the short sale you are waiting on, you may have to decide quickly whether you're willing to raise your price, or not.
So, if you look at other homes while you wait for the answer from the bank (and I know you will!) be careful about hanging on to the short sale home to the exclusion of other great deals out there. You may not get that home or that price after waiting weeks or months, and then those other great deals will be gone.
2. Short sales take a long time. You make the offer and the seller signs it right away like usual, but then you wait. And you may not hear anything for weeks at a time. That's the way it is - frustrating, but nothing you can do about it.
3. The experience and policies of the seller's agent makes a difference. I do interview the seller's agent if you show any interest in writing an offer on a short sale. I will discuss with you what I find out, the pros and cons of working with the individual, etc.
4. Short sale listing agents have different policies, and I may disagree with some of them. Again, I will discuss these issues with you, and you will decide whether or not you want to proceed.
5. Keep in mind that not all short sales you see advertised are really available. Some of them are already under contract, and the agent hasn't followed the rules and changed the status to either 'pending' or 'under contract'. Even if they changed it to 'pending' it still shows as 'active' on many websites. So if you ask me about a short sale listing and I come back and tell you it's already under contract, I'm not just trying to steer you away from it. I just have access to more information than you do.
That sums up the initial facts I think you need to come to grips with before entering the world of short sales in the Denver to Boulder real estate market.
Click this link to see my report on how many short sales there are in each price category: Arvada Home Sales June 2012
And keep on clicking the following links and reading to learn more than you ever thought there was to know about buying a short sale between Denver and Boulder:
She Sells Short Sales by the Foothils
Buying a Short Sale - When Are Inspections Done?
Can You Buy a Short Sale? Yes, If ...
Short Sales are Tough - What's a Homebuyer to Do?
Short Sales - What Keeps Homebuyers Hanging in There?
I've just Experienced a Bidding War ... On A Short Sale! ? !
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Read about life in historic Arvada, Colorado, a small town midway between Denver and Boulder And here’s a little intro to Olde Town Arvada.
Gardeners might enjoy my posts about gardening in Denver to Boulder’s front range.
I write posts on real estate issues and local events in the Denver metro area, especially those communities between Denver and Boulder, as a public service. My hope is to give people an idea of the ‘flavor’ of our community, in case they’re new or moving to the Denver area.
I am a residential real estate agent, happily helping folks buy a house or sell a house in the beautiful and friendly suburbs northwest of Denver.
Copyright © 2012 Joetta Fort, The DiGiorgio Group
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