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Short Sales Offer a Unique Competitive Advantage in Today's Real Estate Environment
By Keith Loria
There was a time not too long ago when a homebuyer faced with the prospect of purchasing a short sale would go off and running without even considering the house. But in today’s housing climate, pursuing a short sale can offer a unique competitive advantage.
A short sale simply refers to a home that is sold for less than what is owed and the bank forgives the excess debt. In fact, lenders in most states are warming up to the idea of short sales, because if they don’t allow them, homeowners would most likely join the tens of thousands who have let their house fall into foreclosure.
Homes listed as a short sale are more likely to be kept up because the seller still wants to get as much money as they can. It’s important to take into consideration the fact that a seller listing their home as a short sale isn’t likely to make any big improvements before the home is sold, therefore, there will more than likely be a lot for the buyer to take care of before moving in.
If you’re considering buying a short sale, understand that it will often take longer than a traditional sale because of the documentation required and the sign-off needed by the lender.
The entire short sale process hinges on the hope that the bank will approve the sale, take the loss and eliminate the costly process of foreclosing, clearing and reselling a home.
If you’re interested in pursuing a short sale, the best advice is to work with an agent who has experience in this type of transaction as they can help expedite the transaction and protect your interests.
By checking recent home sales in the area to get a better idea of which properties are selling, your agent can work with you to come up with an appropriate price that will more likely be approved by the bank.
One important thing to keep in mind is that with a short sale, there is no leniency with the closing escrow date and a buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow.
For more information about purchasing a short sale, contact our office today.