Seven Facts Every Buyer Needs to Know about Short Sales

Reblogger Delores Campbell
Real Estate Agent with Keller Williams Realty - Chesterfield

Silvia Dukes wrote a great post on what buyers need to know about short sales.   They are not like your normal home purchase that most are used to.  Check out her list and if you are in the St. Louis area and are interested in short sales, give me a call.  There are several on the market in St. Louis.

Seven Facts Every Buyer Needs to Know about Short Sales

You have heard the phrase "there is nothing short about short sales".  Recently, I received an inquiry from a buyer who was interested in pursuing short sale opportunities that went something like this

"I am interested in short sale properties.  I am a serious investor looking for a home for my wife and myself. If I like the property, I'd offer 30% less than asking price...."

With all the information and misinformation that people are reading in the media, I understand that this buyer is looking for a good buying opportunity

Short sales can provide these opportunities but only if they fit the situation and are right for that particular buyer. 

Ii is important that buyers know what to expect and to develop a buying strategy that allows them to reach their goals.  

I suggested a consultation to evaluate this buyer's situation including his needs and preferences and to discuss the ins and outs of buying short sale properties.   

Seven Facts Every Buyer Needs to Know about Short Sales

1.    Properties offered as short sales are typically priced to sell and
       offered at a price below market value.


2.    Low-ball offers don’t get buyers “in the door”. 
       Most likely, the seller will reject the offer. 

3.   
Make your offer based on previous sales of similar properties
       in the area.
 


       a.    Seller will accept or negotiate your offer.

       b.    Seller’s lender will review and has to approve the contract.  In this
              process, the lender will obtain appraisals and price opinions based
              on previous sales comparables.The lender will present these
              findings to their investors for approval. 
       c.   
Seller’s lender has the final word and is not obligated
              to approve. 


4.   Proof of funds (if cash) or mortgage approval are required with offer.

5.  Show seller and seller’s lender that you are serious by making an
     above average “good faith” deposit and demonstrate commitment by
     getting inspections completed.

6.  Short sales take time. 
     Be prepared for additional negotiations with the seller’s lender.
     The entire short sale process could easily last from 2-6 months.

7.  There is no guarantee for the successful outcome of a short sale
     offer even if seller and buyer agree on all terms. 

Because of the substantial time commitment and involvement by buyer, seller, agents, title companies, attorneys, and lenders, contracts submitted for consideration need to be such that they have a reasonable chance of success. 

Anything else will not be a productive use of your time and resources.


Seven Facts Every Buyer Needs to Know about Short Sales

Are you a buyer interested in deals, opportunities, or distressed properties in Spring Hill, Florida?  If so, please contact me to find out what type of properties are available in the current market and how they could meet your needs and preferences!   

 

 

 

 

For more information about Hernando County Homes and Land for sale including Spring Hill and the communities of Timber Pines, Glen Lakes Golf and Country Club, Silverthorn, and Hernando Beach , please call or visit my website!

Let me help you find Your place in the Sun!

 

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Delores Campbell

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