SHORT SALES-GOOD FOR THE BUYER OR NOT?
In today's market with so many short sales and/or bank owned and/or 3rd party properties that are distressed...is this a good time to buy? Of course you would say if not for a few obstacles.
Prices are great....that definitely catches your eye. Because of these lower prices on these distressed properties they have driven all the prices lower.
Do you have the time and patience? You can possibly wait up to more than 2 months before you know that the transaction has a chance of closing. Are you willing to wait to see if you will ever get a written answer to your offer.
Are loans harder to get on these distressed properties? Yes...in fact over half the properties out there won't even be able to get a loan for that said property with the actual bank that it is selling it because of its condition.
Do you need help with your closing costs and prepaids? Most of us do....and the banks and 3rd parties are not the least bit interested in hearing you want assistance from them. Many have maximum amounts that they will contribute such as 3%.
What if the property needs repairs, i.e. lender repairs? Most properties are sold "as is" meaning for your loan requirement you will be responsible to make the proper repairs prior to closing using licensed and bonded contractors for the work and organize this with the seller to be completed prior to re-inspection by the lender.
What if I pay for the home inspection or appraisal on the property and find it needing too many repairs for the loan? Sorry, you are now out that money and need to keep looking.
Yes, these short sales are appealing and some are just super deals and if you have the time and patience you may get a screaming deal. So, when you look at these properties please keep an extra eye on any issues/repairs that may be needed for your particular loan. Please remember that if you're looking for that needle in the haystack don't expect it to be perfect, don't expect them to pay all your closing costs and prepaids and don't expect them to take your lowest offer. With these items mentioned above let's go out there and find you a good deal!!!
David Waite-John L. Scott
503-887-5323 or firstname.lastname@example.org