January 15th, 2018 12:57 PM by Joseph Baratta
Are short sales bargains?
The short answer is "sometimes". Many people hear the phrase "short sale" and routinely think of a seller that is in default and needs to sell their property quickly to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. Alternatively, 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 "bargain" price may in fact be consistent with actual market values instead of below.
Hire an agent with short sale knowledge. The real estate agents at Joseph Baratta Realty can assist you in expediting the transaction and make sure you're protected. Don't allow inexperience to impede the closing process. Put our experience and knowledge to work in your favor.
Even with an experienced real estate agent and under the best of situations, buying a short sale property will probably take longer than a typical real estate transaction. Know that a majority of short sales will not close in 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. It's not uncommon that your offer will be seen by a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
Home warranties, buyer credits and allowances, and closing cost concessions are usually non-negotiable when dealing with a short sale. The lender is selling the property as seen which means the lender won't be paying for repairs. Make sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At Joseph Baratta Realty, when we write an offer, we will be looking out for your interests first and foremost and will always advise you to make your offer contingent upon the inspection results.