Want to make a deal on a short sale?

Are short sales bargains?

Every now and then a good deal will come along. Most people hear the term "short sale" and instinctively think of a seller that is in trouble and needs to sell their property promptly to avert further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current, but property values have declined. In these instances the "bargain" price may in fact be in line with true market values, not below.

What's involved in buying a short sale?

• Always do your research before making any offers. Using a qualified real estate agent from Villar and Company Real Estate to assist you with researching a property can help you make educated decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Finding this information can help you determine how much to offer.

• Use a real estate agent with short sale experience. Villar and Company Real Estate can help expedite the transaction and make sure you're protected. Don't let inexperience impede the closing process. Put my experience and knowledge to work in your favor.

• Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Know that most short sales will not close in less than 30 days. Remember that you're not only having to get approval from the seller, but the lender must also agree to the discounted price. In most cases your offer will go before a committee to approve, which will add time - sometimes even 2 to 3 months.
• Home protection plans, buyer credits and allowances, and closing cost concessions are generally non-negotiable when dealing with a short sale. The lender will be selling the property "as 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'm looking out for your interests first and will always advise you to make your offer contingent upon the inspection results.