Mendy Payne

Top Tips to Buying a Real Estate Short Sale

Many real estate bargain hunters are searching for the "secret to short sales" so that they can cash in on the deal of the century. I'm often asked how to buy a short sale. I'm going to lay it out for everyone in this blog post.

Top Tips to Successful Real Estate Short Sales

Short Sale Tip Number 1 : Most Short Sale Properties are sold "as is"

Let me explain why someone would sell a property as a "short sale"...THEY CAN'T MAKE THEIR MORTGAGE PAYMENT!!!!! This would imply they can't replace the old faucet with a new one...they can't afford the cost to mitigate the radon...if you don't like the carpet; we are sorry but we won't be giving you a carpet allowance. However, chances are you will purchasing this property under market value. Therefore, a little expense and repairs are most likely worth the "trade off".

Short Sale Tip Number 2: Be Realistic with your offer

Yes, it is true. You are, most likely, going to get a great deal. However, please don't expect to purchase a home on the golf course right next to the country club....which sold for 1.2 million 3 years ago for $50,000. I am pretty sure you wouldn't even get a counter-offer-ha! Seriously, the bank has certain variables to consider and has to answer to their investor. Please be realistic with your offer and your expectations.

Short Sale Tip Number 3: Be prepared to wait!

Short sales take a looooong time to close compared to a traditional transaction. Don't expect to write an offer and get an answer quickly from the seller with bank approval attached. It is a unique process. Be patient with your Realtor...they want it to close too! Don't threaten to walk away from the sale thinking this will move things along...it actually will do the opposite. The bank is not going to pay additional funds to get a property ready to close if they feel they have skittish buyer.

A short sale is a great opportunity for the buyer and seller involved....be patient, patient, patient...and realistic....keep your eyes focused on the prize!