Looking to buy a short sale?
If a seller is upside down on their mortgage payments, it's becoming increasingly common for the lender to agree to a short sale, whereby the lender agrees to release the mortgage for an amount less than what's due.
Are short sales bargains?
Occasionally. Most people hear the phrase "short sale" and automatically think of a seller that is in financial trouble and needs to sell their house quickly to avert further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have fallen. In these instances the "bargain" price may in fact be in line with actual market values rather than below.
How do I buy a short sale?
- Always do your research before making any offers. Using a qualified real estate agent from
Charise Michell, Estate Agent, Wish Sotheby’s International Realty, CalBRE#01425090 to help you research a property will help you make informed decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Getting this info can help you decide how much to offer.
Get a real estate agent with short sale experience.
Charise Michell, Estate Agent, Wish Sotheby’s International Realty, CalBRE#01425090 can aid you in expediting the transaction and ensure that you're protected. Don't permit inexperience to slow down the closing process. Let my experience and knowledge work in your favor.
- Even with an experienced real estate agent and under the best circumstances, buying a short sale property will generally take longer than a typical real estate transaction. Be informed that a majority of short sales will not close in less than 30 days. Remember that you're not only having to get approval from the seller, but the lender must also agree to the discounted price. Commonly, your offer will go before a committee for approval, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are normally not negotiable when dealing with a short sale. The lender will sell the property just the way it is which means the lender isn't going to pay for repairs. Make sure to reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At
Charise Michell, Estate Agent, Wish Sotheby’s International Realty, CalBRE#01425090, when I write an offer, I will be looking out for your interests first and will always suggest that you make your offer contingent upon the results of the inspections.
When you are ready to buy, whether it is a short sale or a typical home sale,
Charise Michell, Estate Agent, Wish Sotheby’s International Realty, CalBRE#01425090 is available for you. Use my experience and knowledge of real estate to be confident that you are getting a fair deal and will be protected during the full deal.
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