My husband and I both take the time and made the effort to service short sale clients. We know that not all short sale transactions close and we make sure our seller clients are aware of it, too. We spend a considerable amount of time helping our clients sort out their options and help them make good decisions. We extend the same expertise and knowledge to our buyer clients and we make sure they completely understand the nature of short sales before we search the MLS for short sale bargains.
Here are a few pointers buyers should consider when thinking about shopping for short sales:
1. There are NO seller concessions. The seller is insolvent and will take a hit to his/her credit, the lender is losing money on the transaction. There are NO seller concessions.
2. Your short sale bargain might not be in move-in-condition. Remember that the current home owner will be losing his/her home. They are frustrated and they might take this out on the home itself once they vacate.
3. Every short sale is "AS-IS", there will be no repairs to be paid for by the seller or the lender. The seller is insolvent and will take a hit on his/her credit, the lender is losing money on the transaction. NO repairs will be paid for by the seller or the lender.
4. Your offer needs a "Short Sale Addendum". There are certain provisions such as "Approval of the Lender", "Time Periods" that needed to be made part of the regular Contract for Sale and Purchase (which should be an AS-IS contract or have an AS-IS addendum). This is a good example of why it is beneficial to work with a real estate professional able to navigate a short sale. Your short sale expert will know which addendums to use and why.
5. You need at letter of pre-approval from your lender or other sufficient proof of funds. The seller's lender wants evidence that your are financially able to purchase.
6. Sit back and relax. No kidding! The seller's lender is going to need more time to accept your offer than a regular seller would. If you are on a tight schedule, short sales might not be for you.
Consult with a real estate professional if you consider buying a short sale bargain. If you consider real estate in Central Florida, consider working with us
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