Buying a home is a big financial commitment. So, some first-time homebuyers look for bargains. These come in different forms. An estate sale, a fixer-upper, foreclosure or short sale. But with a discount price comes a lot of due diligence. And, it's a more precarious situation. This is because in most cases, the buyer has less control of the process. Especially when it's an estate sale, foreclosure or short sale. So, you should know what to expect from the short sale purchase process.
What can I Expect from the Short Sale Purchase Process?
There are pitfalls to any home purchase, regardless of type, distressed or non-distressed properties. But with short sale purchases, buyers tend to make some common mistakes. These include being too optimistic. Looking past the property's problems and future complications. Skipping the home inspection because of misunderstanding their rights. Ignoring the various legal matters. Not delving into insurance needs and falling in love with a lemon.
A short sale occurs when a lender agrees to accept less than the full balance of the amount owed in order to release their lien on real property. Short sales have become a popular solution for homeowners who wish to sell their property but owe their lender(s) more than their home is worth. --The Settlement Group
Also, a short sale situation is a stressful one for the seller. He or she is giving up a lot of control to be free and clear of an unaffordable debt. Unfortunately, lenders aren't in the business of selling homes. So, don't expect much in the way of concessions. Generally, the only repairs made are those to ensure the property is free of health and safety issues. But typically, that's about the extent. What's more, you not only need to know what to expect from the short sale purchase process but what you should do:
- Work with an experienced real estate professional. If you've already begun your house hunt and stumbled onto a short sale that seems to fit, you should solicit the help of a local real estate professional. You'll have an experienced guide to help you navigate the process and someone who can advise you to your best interests.
- Find the right house. Some buyers begin their search with a narrow focus. Saving money on the purchase price being a driving force. But, it's important to understand, saving on the purchase price might well mean big time rehab expenses. Don't let a fanciful idea dominate your thinking.
- Submit a strong purchase offer. Usually with a short sale purchase, the potential buyer should go in with his or her strongest offer. Lowball offers tend to be rejected because the lender is already losing money on the sale. In general, the stronger the purchase offer, the better.
- Get a home inspection. Unfortunately, some homebuyers skip the home inspection because they believe a house sold as-is, doesn't give them the ability to have it inspected. Nothing could be further from the truth. In fact, this is one situation that absolutely demands a home inspection.
- Wait for lender approval. While it's a nerve-racking wait, it's just part of the short sale purchase process. The lender won't rush back with an immediate answer to your purchase offer. Be prepared to face a long wait period. In addition, be prepared for a higher purchase price counteroffer to come back from the lender.
If you are in the market to buy a short sale home for sale in Verrado and want to know more about the short sale process, give us a call at 623-206-9936. We’ll help you house hunt and find a property which best suits your wants and needs.