Are you interested in buying a short sale? Depending on where you live, you might find a lot on the market. Astute buyers often seek out these listings in the hope of getting a great deal on a home.
However, short sales can be challenging. They often draw multiple buyers, who compete for the winning bid. And it can take a while for all the paperwork to wind its way through the approval process.
A short sale occurs when a house is sold by someone whose outstanding mortgage balance is more than the house is worth. The owner works with his bank, which must agree to accept less than it is owed on the house. As a result, short sales often take longer than a traditional sale.
Here are some tips to successfully purchase a short sale:
· Work with a knowledgeable real estate agent who has experience with short sales. Your agent will be able to keep you up to date on new listings as well as help walk you through a process that can be lengthy and frustrating at time.
· Stay up on the market so you know when new short sales become available.
· Act quickly! When you spot a house you like, try to be the first to submit an offer.
· Be patient. These transactions often take 30 to 60 days-or more-due to all the documentary requirements.
· Submit a reasonable offer. Remember that the lender is looking to reduce its losses as much as possible and with competitive bidding likely for the house, your offers need to be in the ballpark.
· Try to include as few contingencies in your offer as possible. You won't want to waive your right to inspect the property, but if you are pre-approved for a mortgage, then the lender may consider your offer to be more solid than other buyers'.
Would you like to explore the short sales in your neighborhood or take advantage of today's opportunities? Give our CENTURY 21® American Homes Office a call today to learn about available homes in your area.
When looking for a property, the price is far from the only prerequisite. Simplify the home buying process with a checklist of necessary criteria that your new property must fulfill. When you focus on what you absolutely need in your home, you save yourself (and your real estate agent) both time and money. Share your list of priorities with your realtor, so if needed, she can narrow down the search and eliminate any properties that are out of proximity to your work, public transportation, or desired school district.
When viewing potential properties, bring your checklist, so you can easily compare and rank different homes according to how each meets your needs. Remember there is a difference between your wants and your needs. You may need three bedrooms and although you would prefer hardwood floors, they are not essential. You can always do upgrades later, such as finishing off the basement or attic space or pulling up those carpets...what you can't change is your property's location and the size of your lot.
We suggest the following should be included on your list: number of bedrooms, number of bathrooms, number of stories, presence/size of a backyard, style of kitchen, presence of a formal dining room, basement, attic and living room, amount of storage and living space, type of heat, presence of central air, and type of siding. If you plan to enlarge a home, check with your realtor to make sure construction is a possibility. For added assistance, century21.com has a buyer's checklist that you can download.