Ready to purchase a short sale?

Are short sales good deals?

The short answer is "sometimes". Often times people hear the term "short sale" and automatically think of a seller that is in trouble and needing to sell their property fast to prevent further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In cases such as these the reduced price may in fact be closer to current market values instead of below.

What's involved in buying a short sale?

• Always do your research before making any offers. Using a knowledgeable real estate professional from Villar and Company Real Estate to assist you with researching a property will help you make knowledgeable decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Getting this info can help you make a decision about how much to offer.

• Hire a real estate agent with short sale expertise. Villar and Company Real Estate can aid you in expediting the transaction and ensure that you're protected. Don't permit inexperience to delay the closing process. Put my experience and knowledge to work in your favor.

• Even with an experienced real estate agent and under the best of situations, buying a short sale property will probably take longer than a typical real estate transaction. Be aware that many short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the sale terms. A lot of the time your offer will be seen by a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
• Home protection warranties, buyer credits and allowances, and closing cost concessions are typically non-negotiable when buying a short sale. The lender will be selling the property just the way it is which means the lender will not be paying for repairs. Be sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At Villar and Company Real Estate, when I write an offer, I am looking out for your interests first and will always suggest that you make your offer contingent upon the results of the inspections.