Are Short Sales really worth the wait?
Whether Buyers like it or not, a nice chunk of the available inventory on the Market today is "Subject to Short Sale Approval". But the question remains, are Buyers willing to wait the amount of time that may be necessary for the sale to close? Many Short Sale disclosure forms will tell you that it may require 90+ days for an offer to be reviewed by the Bank. And let's not forget our wonderful friend, the Appraisal... It's no wonder these transactions may take more time than usual.
After an offer is accepted by a Seller, the required paperwork gets forwarded to their respective Lender for approval, and the home is placed under a Contingency. During this time, an Agent will normally advise their Sellers to continue showing their home so as to recieve backup offers. This is where the fun part comes in. Is it really worth it to show these homes under Contingency? Will the original Buyer that made the first offer walk away? How long is the paperwork going to be tied up by the bank? Has the appraisal been ordered? How far away is the Seller from going into Foreclosure?
All of these things need to be considered before presenting an offer on a Short Sale property. Everything comes down to TIME! Sure, the "deals" are still out there, but if a Buyer needs to be into a new home within 3 months or so, the Short Sale route may not be the best option. It's important that the Agent discusses ALL of the options available to their clients. There will always be a degree of uncertainty to ALL parties with every Short Sale transaction.
And of course, this is only the icing on the cake, since there is a LOT more to it than meets the eye. It's imperative to consult a specialist to evaluate YOUR options!
The road to Short Sale is long and tedious, the rewards to a Buyer can be great under the right circumstances!
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