Short sales require patience for buyers

By
Real Estate Agent with ERA Herman Group Real Estate

Do you want to buy a Short sale in Colorado Springs?

For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com

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If you are wondering what it takes to successfully buy a Colorado Springs home listed as a short sale, here are  some tips.  

1. Be patient - This is by far the most important thing to remember when buying a short sale.   If you need to move by a certain date, purchasing a short sale isn't for you.   

Don't put in an offer, and then a week later give up on it.  It's a waste of every-one's time.  Be prepared to wait a couple of months for an answer.   (You could even have to wait as long as 6 to 9 months.)

2. Decide on what price to offer -  Have your Colorado Springs Realtor obtain information on other properties that have sold in the area.    Also, ask your Realtor to obtain the listing history of the property as well as prices on other comparable properties that are listed for sale.    After looking at all the facts, decide what price the bank may accept.    According to the National Association of Realtors, 80% of the offers made on short sale properties are not accepted.    It's important to understand that lenders typically will not accept 50% of what the property is worth.  They are not going to give-away the homes.

Banks don't want to own the home, but they still operate a business and have shareholders to answer to.  

3. Homework - Do your "Due Diligence" on the home before making an offer.  Most Colorado Springs short sale homes are sold "as-is"; consequently you may want to have an inspection on the property before you put in an offer on it.  If there are "major" things that need repaired, you may want to get an estimate on them and take pictures of these items and submit this information with your offer.   This info may help the lenders approving the short sale be more willing to accept your offer if they have documents on the repair information and estimated costs to fix the items.

If you are getting a VA Loan or an FHA loan, may sure the house will meet appraisal conditions.   If the paint is peeling, chances are it will come back as an appraisal condition.   If the roof is in really bad shape, it may also come back as a condition.

4.Pre-qualification letter - Give your Realtor a pre-qualification letter from your lender if you are financing the purchase.   This letter will be submitted with the contract to the lender.  (See:  Pre-Qualification or Pre-Approval, which do you need to buy a home?)

5. Experience -  Make sure your Colorado Springs Realtor has experience with short sales.  (I've seen more contracts not go through because one of the Realtors didn't understand the short sale process and didn't explain to the buyer or the seller on what to expect.)    Don't be afraid to ask your Realtor if they have successfully closed any short sales.   Ask them to explain short sales to you and the process involved.

For more information about purchasing a short sale in Colorado Springs, Contact Kathy

  

Colorado Springs Real Estate Agent, An Expert You Can Trust

Selling Real Estate in the Colorado Springs area, including Monument,  Fountain, Larkspur, Pueblo, Castle Rock, Manitou Springs, Woodland Park, Palmer Lake

  www.ColoradoSpringsVintageHomes.com, www.KathyTorline.com

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Tags:
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Ambassador
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Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

The most important factor for a short sale offer to be successful. .is the buyer offering is on line to a pretend BPO? 

YES?  Great chance

NO?  Wasting time ...even if you offered listing price!

 

Great post, I wish I could reblogged it

Feb 10, 2011 12:12 AM #1
Rainmaker
179,418
Kevin Vitali
EXIT Realty- Massachusetts Short Sales & Residential Sales - Tewksbury, MA
Helping Massachusetts Home Buyers and Home Sellers

If you dont have time to wait for the short saley process, don't put an offer on a shorts sale.  And make sure you are represented by an agent that understands short sales.

Feb 10, 2011 06:28 AM #2
Rainmaker
497,551
Steve Scheer
Realty Oasis - Metro Brokers - Highlands Ranch, CO
Highlands Ranch Real Estate - Denver Real Estate

Great advice Kathy, short sales are not for everyone, this will help guide them.

Feb 11, 2011 04:12 PM #3
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Rainmaker
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Kathy Torline

Colorado Springs Real Estate Blog 719-287-1049
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