There are plenty of Short Sales in Atlanta Georgia however you may need to be patient with the oftentimes complexity with the lenders bank making an agreement to sell. If you get past all these processes short sales is a great way to acquire Atlanta properties at a bargain price. Short sales is basically when the home owner agrees to cut their losses and so does the lender by mutually agreeing to accept a selling price less than the total debt owed to the lender on the property. So that’s why it can be a bargain for somebody buying it, although you probably have to be patient while waiting for the bank to finally agree the sale. And also you may have to offer a bit more than the short sale price if the there’s a lot of interest in this property.
Here are the steps to buying a short sale:
- Find Short Sale Properties - You can use Trulia or Zillow if you can’t find any in your local newspaper ads. Determine how much is owed on the house in relation to its value. If you are able to research this on the MLS some of the information can be found there if it’s listed the last time it was sold.
- Try to view the property and if possible use a qualified home inspector to check the house so that you can calculate cost of repairs and renovations. Note: short sales are usually sold “as is”.
- Estimate your total cost, which is the final agreed selling price, plus cost of renovations and repairs and other cost associated with making the property desirable. You might want to live in it or consider reselling this afterwards so don’t overlooked this part.
- Make sure all liens and mortgages have been cleared. Get your attorney to advise you.
- Short sales are often bought up by real estate investors who have ready cash or financing organized and ready in time. But if you’re buying the property for yourself you may need to look at other financing instead of a regular bank mortgage. Working With Houses can advise you about financing.
- One’s you’ve cleared up about the debt and you’ve calculated your total cost including your price and your offers been accepted then you either pay your bag of cash or arrange a loan.
- If you’re not a cash buyer, then you need to complete your lenders short sale application if it’s required.
- Put together a proposal which consists of the application and authorization letter. The purchase and sale contract, signed by you and the seller to buy the property for the price agreed. Consult with Working With Houses if you need further advice at 678-408-2228.
- Be prepared for your offer to be rejected so negotiate on a price that still works for you with the seller. Don't be afraid to walk away if the lender won't meet your final figure.
- Seal the deal after you’ve reached an agreement with the seller and lender and make sure to get everything in writing and officially recorded. Ensure that the seller understands all of the terms of the deal. Finally, it’s closing time and the property is yours.
As a reminder when you got repairs and renovations to undertake ensure that you have a plan with your contractors and handyman that specifies the materials to be used, quotations and the timeline is all agreed so it fits your budget. Refer here to learn more on how to handle your contractors.