Is a Short Sale a Good Choice for Me as a Buyer?
If you are contemplating the purchase of a short sale home or if you simply want more information about the general procedure in purchasing a short sale, this post by Realtor Chris Ann Cleland, from Northern Virginia is a good start. There is lots more too know…
Is a Short Sale a Good Choice for Me as a Buyer?
In the Northern Virginia marketplace, buyers are getting a little antsy for more inventory. When I take on a new buyer-client I always find out as much as I can about the time frame. First time buyers that are living in their parent's basement probably have more flexibility that a family that is relocating from out of state and needs a home in less than 6 weeks. The timing of WHEN you need your home is what makes deciding whether or not a Short Sale is wise for you to even consider when buying.
Because Short Sales can take anywhere from sixty day to nine months, you won't have an exact time that you will be able to move into it. Heck, the sale may not even be approved by the Short Sale Bank. Or maybe the Sellers won't agree to a cash contribution needed by the Short Sale Bank. Then you've waited all that time and don't have a house. Depending on your circumstance, it may have been worth the try.
So here's a quick list of who IS a good Short Sale Buyer candidate and another for who is NOT.
A Short Sale may be right for you if...
You have no definite time frame to get out of a home or lease
You are comfortable moving from your current home, if there is a definite move out date, into temporary housing for as long as it takes.
You are comfortable buying a home that may not be in tip top shape and likely has some deferred maintenance issues.
A Short Sale may not be the right choice if...
You have a home to sell to get into the next home. Banks don't like home sale contingencies.
You're current home is under contract and you don't have unlimited time to buy your home of choice.
You will not live in temporary housing if the need arises. You want to move once and be done.
You want the certainty of knowing that when a home owner accepts your offer, that unless there are issues with your loan, the home inspection or appraisal, you are going to end up buying that home.
There is a level of uncertainty in every real estate transaction, but Short Sales add a level of uncertainty that can't be plotted on a calendar. Every buyer knows within how many days their home inspection is due. When the appraisal is due and so on. The Short Sale Bank doesn't go by the time frame you have placed in the contract for Short Sale Approval. I don't think they even look at that paragraph.
So if you are a buyer that a Short Sale doesn't fit, and you seem to think you've found homes on websites that are not turning up in what your agent sends you, chances are they are the Short Sales that have been eliminated as options. As soon as you become more flexible with time and temporary living, they will be options again.
Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header is a combination of photos from the Bristow, Gainesville & Haymarket areas, taken by Chris Ann Cleland.
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