A short sale is where a home is sold for less that the loan amount and the bank takes the short amount as payment in full. Short sales are a tactic that a seller can use to avoid foreclosure. A short sale can also be a great deal for home buyers, as long as they know what to expect.
You can get a bargain
Time is usually short (pun intended) for sellers in a short sale situation. With the current over supply of inventory, the price of a short sale must be low to get the attention of buyers looking for homes for sale. The foreclosure clock is ticking and the seller must put a price out there that will get an offer fast.
Most banks will accept somewhere around 80% of market value to forgo the foreclosure process. Banks don’t want to go through a foreclosure either. If the loan amount is really low, that makes the possibility of getting a good deal even better.
Most Realtors have ways to determine how much is owed on the loan and the market value of the home. Armed with these two pieces of information, we can determine the probability that the short sale offer will be accepted by the bank.
Offer must be clean
The offer for a short sale must be clean. Contingencies, such as having to sell your home first, will not be accepted by the bank. Also, you should avoid asking for closing costs and home warranties. Focusing on the price is the best way to get your offer accepted and to get the very best deal.
It takes time
Once we find you the right short sale, and submit an offer, the waiting game begins. It can take anywhere from 3-8 weeks for the bank to respond to the offer.
If you must be in a home by an absolute certain date, then short sales may not work for you. But if you have some flexibility with regards to your move in date, you could end up with a home that is up to 20% below the already soft home prices we are seeing in our real estate market.
Ready to see what kind of short sale deals are out there?
Think a short sale might work for you? Give me a call at 919-602-7000 or email me and we can set up a time to discuss your situation and discover if you might benefit from this great opportunity.
