Parkville Homes - Should I buy a Short Sale?

Parkville Homes - Should I buy a Short Sale?

What is a Short Sale?

A short sale means the seller owes more on the house that what it's worth and the bank is willing to accept an offer from a buyer that is less than the current amount owed. Whoa, that was a mouth full!

How do Short Sales work?

Well very similar to a traditional purchase, buyers shop with their LOCAL REALTOR to find a home to write an offer on. Write the offer with your REALTOR. It's submitted to the sellers REALTOR for review. The seller can accept, counter or reject the offer. Once seller and buyer agree to terms it becomes a contract.

This is where the deal differs from a traditional sale. This contract is submitted to the bank for third party approval. The bank(s) will review the contract. The banks can counter or reject as well. Depending upon how many mortgages, liens, tax liens, water liens, home owners/condo association fees, contractors liens, etc. how far behind the mortgage is, the amount owed, etc. are all things the bank(s) have to review before the bank will issue a third party approval. This can take 3 or more months before you get an approval.

THIS TAKES TIME! There is no rushing this process.

THE GOOD NEWS? Short Sales are way below market value, so chances are the buyer is getting a great deal.

IS A SHORT SALE WORTH IT?

Now buyers there are a few things to remember with a short sale.

1. They take a long time.

Are you in a lease situation?? Do you need to be in the home by a certain date? If so, DO NOT WRITE A OFFER ON A SHORT SALE! Unless you can make alternate living arrangements while you wait, don't do it!

2. Will the bank do repairs?

BANKS DO NOT DO REPAIRS!! Short Sales are as-is. Here is my recommendation. If you really like the house and lender required repairs come up, be prepared to have money set aside to do the repairs yourself! Be sure you have seller permission as they still legally own the property and you could be liable for any damage by contractor. Use licensed, bonded and insured contractors only!! Even with putting money into it yourself, chances are you are still getting A GOOD DEAL!

Last but not least, it's not worth lowballing a short sale! It takes so long and chances are they will counter back anyway, not worth wasting time. If you don't like the house, there are a gazillion other homes available to choose from.

NEXT STEP:

* Search for Short Sale

* Contact a LOCAL REALTOR certified to work with short sales, Certified Distressed Property Expert for an appointment, showing and more information.

Keller Williams Realty Baltimore
443-465-8443 m/t
410-246-6032 o
HeleneSellsHomes@gmail.com

REALTOR
EQUAL HOUSING OPPORTUNITY
CERTIFIED DISTRESSED PROPERTY EXPERT