You can't do a home search without coming across what is designated as a "short sale". Many buyers are often not sure what this means. Simply put, a "short sale" is a pre-foreclosure situation and is a sales transaction in which the seller's lender agrees to accept a payoff of less than the balance due on the loan. These are situations where a seller owes more than the property sells for. Unlike normal listing situations, the lender is provided a Comparable Analysis, but does not approve an accepted price until an offer is made. Therefore, setting listing price has obvious challenges. These are transactions which (in most cases) take a bit longer to close after making an offer because the bank must determine what is an acceptable loss to them once an offer comes in and will seek to minimize that loss.
Recently, the term "approved short sale" has been coming up on listings. These are Short Sale listings in which an offer has come in, the bank approved a price, and the sale did not close for whatever reason. This situation is more optimal because we now know what the lender is willing to accept as an offer. The time frame for acceptance of an offer in this scenario is often shorter.
Short Sales are often priced to sell the property quickly, and can be "great buys". The best strategy for seeking to purchase a property which is a short sale is:
- Get with a Realtor. These are 'tedious' transactions and you want someone educated and experienced in dealing with these types of Real Estate purchase situations.
- Look for 'Approved' Short Sales. Listing Agents are often designating this in the description.
- Be prepared to wait for an approval once the initial offer is made. It could take 30+ days for an acceptance.
- Don't expect to be able to be too aggressive with negotiations since this is a loss situation and the lender is attempting to minimize that loss as much as possible.
- Have a backup properties you are interested in purchasing.
In Palm Coast, FL there are 514 Residential Houses for sale that are designated as Short Sales. 39 are designated as 'Approved' Short Sales with prices ranging from $79,000 to $424,900.* Contact me today for an 'Approved' Short Sale list.
* Disclaimer: Information based upon the Flagler County Association of Realtors MLS as of 2/16/09. Information may be deemed reliable, but is not guaranteed.
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