Look. We don’t blame you one bit. The prices of some shorts sales are too tempting to not consider – and even put an offer on.
But short sales – often called ‘long-and-unlikely sales’ by those in real estate – aren’t always cut-and-dry deals and, as such, require a little extra research, time and patience.
The upside to a short sale deal if you’ve got the moxie? A new home for you at a steal of a price.
If you think you’ve got the patience, determination and just enough luck to give a short sale a try, here’s everything you need to know and expect.
- Manage Your Expectations
Before you become emotionally invested in a short sale, call your real estate agent to research it first. Why? Because in some markets, fewer than one in 10 short sales close.
- Know Your Market
While a short sale may be priced below comparable sales now, it may close higher since short sales take anywhere from two to four months to close – so more recent pending sales will become the comparable sales at closing.
- Know Your Numbers
Find out how much is owed on the home and the number of loans that are recorded. Since a second or third mortgage lender will receive far less than the first lender, an offer 20-30 percent of the mortgaged amount will likely be declined.
- Research The Seller’s Agent
If the listing agent has never closed a short sale, then they may not be qualified to handle the negotiations on your behalf as only they can talk to the bank.
- Verify That The Short Sale Package Is Complete
A complete short sale package from the seller consists of – at a minimum – the following:
- Sellers’ hardship letter
- Tax returns
- W-2s
- Payroll stubs
- Financial statement
- Bank statements
Without these, the ale could be delayed or – worse – denied.
- Know Your Competition
Hot deals with receive multiple offers and while the agent isn’t required to disclose the terms of those offers, they may be more inclined to let you know how many other offers its received – and make your offer accordingly.
Once you’ve done all that, it’s time to wait. If your offer is accepted, make sure you inspect the home as the lender will not allow a seller to pay customary items that a traditional seller would pay. It will be an as-is property – so it’s important to know what you could be potentially buying.
Does it all sound daunting? Sure. Does it help to have an experienced real estate team by your side, every step of the way, to make sure you give yourself the greatest odds of success? Of course. And luckily for you, we at DeLeon Sheffield are just such a team.
Because at DeLeon Sheffield Company, ‘We’re More Than Realty; We’re Family.’
