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Many
real estate agents these days don’t even like to write an offer for short sales
because right now national statistics show that less than 40% of all short
sales actually make it to the closing table. This is because of more than one
reason. First, lack of financing largely contributes to offers on short sales
not being successful. Also, lack of cooperation from either side is also a
reason for unsuccessful short sales.
Short Sales Are Often Better
Deals Than Foreclosures
But some
of the best opportunities in this market are in short sales – so if you are a
buyer, here are some things to keep in mind when considering making an offer on
one of these properties.
Contrary
to what many buyers believe there are much better deals to be had in short sale
situations as opposed to foreclosures. The main reason for this is that in the
case of a short sale, there is much more time involved and discounts on the
price of the property work to accommodate that extra time.
Some Extra Preparation Is
Needed, But Not Much
Another
problem that arises often is when buyers’ real estate agents advise their
clients not to do an appraisal and home inspection during the process of buying
a short sale. These two aspects are critical for the purchase of a short sale
and can make or break your decision in a huge way. If you are unwilling to do
either of these, it might be time to consider whether you are a good candidate
to buy a short sale.
The
reason I suggest having a home inspection and appraisal done ahead of time for
short sales is mainly because of the time commitment it takes to do such a
transaction. It is far more beneficial to learn ahead of time of any issues
with the home or whether or not your bank would approve your home’s financing
based on its appraisal. To go through months of processing only to learn that
there is a problem that becomes a deal breaker can be avoided by getting these
things done in advance.
Appraisals
make sense because one of the biggest reasons that short sales do not go
through is when the bank’s valuation of the property does not line up with the
market value of the property. A way to avoid this misaligned value of the home
is to get an appraisal done in advance so you know what you are dealing with.
~
For more
information on this or other short sale related concerns, I invite you to
contact us today at 703.564.4026 or 301.660.6272.
