Why buy a short sale?
Why buy a short sale?
You know all the reasons not purchase a home in pre-foreclosure. They take forever. They never close. The bank approves a sale but the price is too high or the seller won’t agree to sign a note. Yes, chances are if you make an offer on a short sale you will not get the property. Many buyers submit simultaneous offers on multiple properties and not one sticks. It’s a numbers game.
However, if your agent represents the short sale then your chances dramatically increase. He is likely to be “more effective” now that he has increased control of the transaction. He knows what the seller is doing on their end in regards to providing timely information to the bank. And he knows the patience level and the intention of the buyer.
They are still good deals. Though the majority of the bank owned/REO properties are priced to sell, sometimes the short sale negotiator approves a sell below market value.
I currently have a buyer in escrow on an approved short sale with another listing agent. I RARELY show short sale homes to my buyers because of all the obvious reasons. But we submitted this offer 2 months ago and continued to look for other offers. Low and behold…. And this is where short sales can be advantageous. This home is still occupied by the owner and the “pride of ownership” still exists in this home. So it’s been kept up and loved. In fact, the homeowner has agreed to make repairs costing them over $1500. Most REO’s are As-Is (as are short sales) and you won’t get a Seller’s Disclosures Statement. This really has turned into a traditional sale that’s taken 75 days to close instead of 30-45.
If you are a patient buyer and understand the short sale process then you are the right candidate for these types of homes. Short sale homes are predicted to be the majority of homes sold over the next few years. Therefore, processes are bound to be improved and they have been. BofA has a new process that should allow a buyer to close in less than 90 days. That process started 2 months ago. Keep ‘em crossed.
