Ready to make a deal on a short sale?

Are they good deals?

The short answer is "sometimes". Many people hear the term "short sale" and instinctively think of a seller that is in trouble and needing to sell their house promptly to avert further financial problems. This is occasionally the case and can be an opportunity for a buyer to make the most of another's misfortune. In contrast, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have fallen. In these cases the discounted price may in fact be closer to true market values, not below.

What's involved in buying a short sale?

• Prior to making any purchase offers, do your research. Using a knowledgeable real estate agent from Bill Lee & Associates, Inc. Realtors to assist you with researching a property can help you make educated decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this information can help you determine how much to offer.

• Get a real estate professional with short sale experience. The real estate agents at Bill Lee & Associates, Inc. Realtors can help expedite the transaction and make certain you're protected. Don't allow inexperience to hinder the closing process. Let our experience and knowledge work in your favor.

• 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. In most cases your offer will be seen by a committee to approve, which will add time - sometimes even 2 to 3 months.
• Home protection warranties, buyer credits and allowances, and closing cost concessions are generally not negotiable when working with a short sale. The lender is selling the property as seen which means the lender will not be paying for repairs. Make sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At Bill Lee & Associates, Inc. Realtors, when we write an offer, we are looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the outcome of the inspections.