Buying a Short Sale
January 3, 2020 | pacificpropertiesteam
Looking to make a deal on a short sale?
When a homeowner owes more on their house than its value, it’s becoming increasingly common for the lender to agree to a short sale, whereby the lender consents to release the mortgage for a sum less than what’s owed. If you have questions about real estate in Coos Bay, Oregon, contact us here or e-mail us.
Are they good deals?
Occasionally. Many people hear the phrase “short sale” and instinctively think of a seller that is in financial trouble and needing to sell their house fast to prevent further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another’s misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In these instances the reduced price may in fact be in line with current market values, not below.
What’s involved in buying a short sale?
- Always do your research before making any offers. Using a qualified real estate professional from Pacific Properties to support your research of a property can help you make educated decisions. We can help reveal to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Locating this data can help you decide how much to offer.
- Get an agent with short sale expertise. The real estate agents at Pacific Properties can aid you in expediting the transaction and make certain you’re protected. Don’t allow inexperience to slow down the closing process. Let our experience and knowledge work for you.
- Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that a majority of short sales will not close in 30 days or less. Remember that you’re not only having to get approval from the seller, but the lender must also agree to the sale terms. A lot of the time your offer will go before a committee to approve, which will add time – sometimes even 2 to 3 months.
- Home protection plans, buyer credits and allowances, and closing cost concessions are normally not negotiable when dealing with a short sale. The lender will be selling the property “as is” which means the lender isn’t going to pay for repairs. Always reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Pacific Properties, when we write an offer, we’re looking out for your interests above all else and will always advise you to make your offer contingent upon the outcome of the inspections.
When it is time to buy, whether it be a short sale or a typical home sale, Pacific Properties can help. Use our experience and knowledge of real estate to feel confident you are getting a fair deal and remain protected during the entire deal.