Steve Burke, SSP

Broker , SSP

Short Sales Offer a Unique Competitive Advantage in Today's Real Estate Environment



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Short Sales Offer a Unique
Competitive Advantage in Today's Real Estate Environment

 

By Keith Loria


There was a time not too long ago when a homebuyer faced with the prospect of
purchasing a short sale would go off and running without even considering the
house. But in today’s housing climate, pursuing a short sale can offer a unique
competitive advantage.



A short sale simply refers to a home that is sold for less than what is owed
and the bank forgives the excess debt. In fact, lenders in most states are
warming up to the idea of short sales, because if they don’t allow them,
homeowners would most likely join the tens of thousands who have let their
house fall into foreclosure.



Homes listed as a short sale are more likely to be kept up because the seller
still wants to get as much money as they can. It’s important to take into
consideration the fact that a seller listing their home as a short sale isn’t
likely to make any big improvements before the home is sold, therefore, there
will more than likely be a lot for the buyer to take care of before moving in.



If you’re considering buying a short sale, understand that it will often take
longer than a traditional sale because of the documentation required and the
sign-off needed by the lender.



The entire short sale process hinges on the hope that the bank will approve the
sale, take the loss and eliminate the costly process of foreclosing, clearing
and reselling a home.



If you’re interested in pursuing a short sale, the best advice is to work with
an agent who has experience in this type of transaction as they can help
expedite the transaction and protect your interests.



By checking recent home sales in the area to get a better idea of which
properties are selling, your agent can work with you to come up with an
appropriate price that will more likely be approved by the bank.



One important thing to keep in mind is that with a short sale, there is no
leniency with the closing escrow date and a buyer must close on time. Because
of this, it is important to take care of all loan paperwork immediately after
opening escrow.



For more information about purchasing a short sale, contact our office today.

 

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