5 Short Sale Buyer "Must Know" Items
Jun. 8, 2009
Many of my clients have fallen in love with a short sale property only to have their hearts broken. Let me explain how you can avoid this. There are five things you must consider before making an offer on a short sale.
- The price. Because no one knows what the bank is willing to take for a short sale this is an unknown. Usually short sales are priced well below market value. That doesn't mean the bank will take the listed price. Only be working with a good agent will you get a price that is in line with what the bank wants.
- The timeline. If you need to move by a certain date, stay away from short sales. You never know when the bank will move on them. You may be waiting for months.
- Other offers. In most cases the bank can take offers right up until your close of escrow. So you need to be comfortable with this. While it is unlikely once you have opened escrow for them to take another offer, it can happen.
- A good deal. Short sales can be a good purchase decision. If you are comfortable with uncertainty on price and availability you probably will get a great deal on a wonderful home.
- Patience, Patience, Patience. That's all it takes to get a great price and a great house buying a short sale.