Looking to make a deal on a short sale?
When a homeowner owes more on their home than its value, they can sometimes get the lender to agree to a short sale, whereby the lender agrees to release the mortgage for an amount less than what's owed. If you have questions regarding real estate in La Quinta, California, contact me here or e-mail me.
Are they good deals?
Every now and then a good deal will come along. Often times people hear the words "short sale" and instinctively think of a seller that is in trouble and needs to sell their home promptly to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In these instances the discounted price may in fact be closer to true market values, not below.
How do I buy a short sale?
- Always do your homework before making any offers. Using an experienced real estate agent from Desert 1st 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, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Having these facts can help you make a decision about how much to offer.
Use a real estate professional with short sale knowledge. Desert 1st Real Estate can help expedite the transaction and ensure that you're protected. Don't let inexperience hold up 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 informed that many short sales will not close in less than 30 days. Remember that you're not only having to satisfy the seller, but the lender must also agree to the discounted price. A lot of the time your offer will be presented to 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 normally non-negotiable when buying a short sale. The lender is selling the property as seen 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 Desert 1st Real Estate, when I write an offer, I'm looking out for your interests first and foremost and will always advise you to make your offer contingent upon the outcome of the inspections.
When it's time to buy, whether it is a short sale or a typical home sale, Desert 1st Real Estate can help. Utilize my experience and knowledge of real estate to feel confident you're getting a fair deal and will be protected during the complete transaction.