Things to Remember Before Buying a Short Sale

If you are reading this article, you may be considering entering into a short sale agreement on a home. If this is you and if you are completely excited over a possible deal on real estate, give yourself a moment and take a step back. There are certain items that you must remember before entering into any short sale agreement.

You must know all the facts about a piece of character before you consider if a short sale is worth it and it is good to closest place a call to your real estate agent to ask for their assistance in this course of action.

Rules of Buying Distressed character

It is important to remember that the rule of averages states that only about two in every ten short sales inevitably close. This is because in spite of if a piece of character is listed well under the market value of a neighborhood, the seller’s bank is nevertheless not under any obligation to agree to an offer or sell the character.

If you see a listing that is very low, understand that there will be fierce competition on the character and this is sometimes used as a selling tactic to excursion interest and increase attention given to a piece of character. In fact, it is a statistic that homes that are priced very low, typically sell closer to market value than a home that is moderately priced.

Next, make sure you ask your real estate agent to fully probe the character and determine just how many lenders are involved and how many mortgages are associated with home. In addition, if your agent is experienced with short sales they will be aware and understand which lenders use this as a sales tactic and which are easy to work with when it comes to a short sale buy. They will be able to inform you whether or not this is something to go after.

shared Pitfalls

It is important for you to also look at the statistics associated with the listing agent. If they are experienced, you should see that they have closed some with regularity. If they have not this could be a bad sign for you as a buyer. The reason is because your agent can have no discussion with the bank about this short sale and that it is up to the listing agent to truly submit offers on a short sale to the lender. If they are unable to do this, you run the risk of wasting your time.

In addition, you need to find out if the seller has received approval to go into into a short sale. This goes back to the rule that just because the seller wants to offload a piece of character and a loan does not average their lender will ultimately approve the sale. There must be an approval course of action that is met on behalf of the seller to their lender in order to make this deal happen.

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