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Should You Buy A Short Sale?

By
Services for Real Estate Pros with PalmerHouse Properties Realty

The discussion of should you buy a short sale can often bring about much debate, but I will offer my view as someone who deals with many short sales. Now you probably think I would have a bias view that all short sales are great, but don’t think so fast. Let me share

Short Sale Pending Bank Approval:

Those words in any listing is usually a red flag saying it is going to take somewhere between 2-6+ months before that home will be sold, (At least here in Georgia). Why? Well the short sale process is a long and somewhat frustrating document shuffle between seller and lender(s) where eventually the existing debt is negotiated down to an approved sales price to be sold. More times than not, a buyer who initially writes the offer gets sick of waiting around and eventually moves on to another house. If you are a buyer who doesn’t mind waiting out the banks slow work mentality, then perhaps putting in an offer now doesn’t hurt. If you are not so patient, then you might want to look at the homes that are “Short Sale Approved”.

Short Sale Approved:

These are the magic words that the bank gives when they have agreed to sell the home for a certain payoff. The bank can sometimes be more concerned about what their actually net payoff is on the HUD-1 than a set purchase price, so the approved price could be higher or lower than what it actually sells for. For a home to be at this point with no buyer lined up, more than likely means an offer was put in months before, but now that buyer has walked away. Putting in an offer now will be more like buying a foreclosure, where the bank has final approval. More often than not, these short sales are priced below appraised value and present themselves as great buys for homeowners and investors alike.

Conclusion:

Should you buy a short sale? Well the answer is yes, but you must know at what stage the short sale is in and how long it might take before you move in. Be patient, do your due diligence and work with an agent who understands the transaction. Happy House Hunting!

 

 

Eric Wanck is a short sale investor/real estate agent located in Atlanta, GA. He works with Nextage Peachtree Realty and specializes in helping homeowners and buyers through the short sale process You can reach him at 770-688-5448 or contact him at http://activerain.com/atlshortsalepro/contact

 Interested in knowing more about Nextage Realty? Check out www.brokerageofthefuture.com. Learn the secrets of short sale investing at www.freeshortsalesuccess.com

Realis Team
Realis - Denver, CO

Patience is always key. Buyers should really have an agent that's a pro at the ins and outs of the nuances during the sell. 

Mar 21, 2011 05:32 AM