Looking to purchase a short sale?

Are short sales good deals?

Every now and then a good deal will come along. Many people hear the term "short sale" and instinctively think of a seller that is in financial trouble and needing to sell their house fast to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to take advantage of another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have declined. In these cases the "bargain" price may in fact be closer to true market values instead of below.

What's involved in buying a short sale?

• Prior to making any purchase offers, do your research. Using a qualified real estate professional from The Alden Team to support your research of a property can help you make informed decisions. We can help learn to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this data can help you determine how much to offer.

• Get a REALTOR^® with short sale experience. The real estate agents at The Alden Team can assist you in expediting the transaction and make certain you're protected. Don't permit inexperience to impede the closing process. Let our experience and knowledge work for you.

• Even in the best of situations and with an experienced real estate agent, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that many short sales will not close in 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. In most cases your offer will be seen by a committee to approve, which will add time - sometimes even 2 to 3 months.
• Home warranties, buyer credits and allowances, and closing cost concessions are generally non-negotiable when dealing with a short sale. The lender will sell the property as seen which means the lender won't be paying for repairs. Make sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At The Alden Team, when we write an offer, we're looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the outcome of the inspections.