What You Need to Know Before Making an Offer on a Short Sale

 Tips and Strategies to Purchase a Short Sale Property

If you are considering purchasing a short sale property there are some things you need to know so that you are prepared and not alarmed by any surprises along the way. Those that choose a short sale should do so only if they are very patient as short sales tend to take several months to complete.

A short sale is a great way to obtain a home below-market value and find a great deal but you need to be aware of all of the stipulations and qualifications that a short sale may present. Because there are so many different parties involved in a short sale transaction, if you need to close quickly, a short sale may not be the best option for you. Even after an offer has been accepted, lenders will need to approve the sale and file paperwork, which could take anywhere from 2 to 4 months and potentially longer.

• If you're looking to purchase a short sale make sure you have your finances in order ahead of time.

Because lenders like cash offers, you need to bring your best and most complete offer to the table, especially if you're competing with cash offers. Just because your financing a home doesn't necessarily mean you won't get the short sale but you may have to jump through more hoops. Having your finances completely in order before submitting an offer shows the lender you are serious about buying and of already done the necessary homework in order to purchase this property. The larger the down payment you submit and your offer may be viewed more favorably than that of the buyer's financing is less secure.

• Try and minimize your contingencies.

If you must sell a home in order to purchase a short sale, lenders may feel that that is too high a risk and reject your offer. If you need to purchase a home or close within a certain timeframe, you may be disappointed. Short sales are better for those that have no immediate time frame. Lenders may also choose to list the property "as-is” which implies that they will not do any work on the home but this is not necessarily the case. If there are serious hazardous issues that the seller would need to complete anyway in order to sell the home, you are more than welcome to ask for it on an inspection. Remember though, the more hassles the lender has to jump through for a buyer, the less likely they will be to accept your offer.

• Enlist the right assistance.

Having a qualified short sale real estate professional and an experienced real estate attorney can all help clarify issues should they come up and explain the sometimes confusing legal jargon of real estate contracts and offers. Having a real estate professional that has dealt with multiple short sale and foreclosure transactions means that you will feel more comfortable throughout the process and feel secure asking any questions and understanding your options and your rights.

If you blindly stepped into a short sale procedure without an experienced real estate agent by your side you may not understand how lenders work so one of the best things we can suggest is to contact an experienced and skilled real estate professional in your area.

Read more: What to expect in a bank owned home?

We work with hundreds of buyers throughout the Columbus Ohio real estate market each year on both the seller and the buyers side. Because we deal with short sales on a daily basis we know the in and outs, details and proceedings of just about every kind of short sale transaction out there. You can feel confident trusting the Vision Realty Team for your next short sale purchase in the Columbus area.