A house that is listed as a short sale means the seller is attempting to negotiate a deal with the bank in the hopes of avoiding foreclosure. This not only helps the owner salvage credit rates and lift heavy mortgage debt, but it also helps the bank to eliminate the costs of foreclosing, clearing, and reselling the home. When looking to buy a home in short sale,there are five tips to keep in mind.
1. Prices may be misleading: When the home is listed on the market, the seller often creates a low asking price to attract potential buyers. However, the bank holds the power to accept or deny an offer, ultimately maintaining the final say in the price.
2. Short sales aren't always short: Short sales are often a long process. This has a lot to do with the bank being incontrol of price offers. In addition, due to a high volume of offers, it may take a long time to receive feedback.
3. There are no exceptions in closing short sales: After an offer has been approved, there is typically no leniency when it comes to the closing date. This means that all paperwork should be finalized a few days prior to the closing date. An extension may be granted if the bank has been informed well in advance, but they are never guaranteed.
4. Remain optimistic: Since the short sale process can be a drawn out process, it may become overwhelming and disappointing. There are many twists and turns in the short sale process, so it is important to remain optimistic and patient throughout the process.
5. A good listing agent is imperative: Without a listing agent who is experienced and skilled at short sales, the process will not be worthwhile. The agent must be able to effectively communicate with the bank, other agents, and prospective buyers. Even though the bank has the final say in the price, the listing agent holds the key to success.
Remember, a short sale may be a great opportunity to find your dream home at a great price, so be sure to follow these tips when dealing with a short sale to avoid headaches.