Bank Owned and pre foreclosure properties can be great deals for today’s home Buyers. Here is the list of 7 things to consider when buying a short sale.
1. The owner is losing their home in a short sale. Stay compassionate to their plight. The owner has very little incentive to facilitate your short sale, so always stay calm and courteous.
Timing is one of the things to consider when buying a short sale
2. Short Sales should be called LONG sales. One of the most important things to consider when buying a short sale is these transactions take a very long time. Six months is not uncommon. It can take weeks just to hear back from the bank when you make an offer.
3. Homes are As-Is. Sure, you have an inspection with a short sale. But banks are not going to do any repairs. The bank is already losing money on the transaction. I’ve seen broken pipes, destroyed electrical systems and worse.
4. One of the first things to happen with an abandoned home: the water gets shut off. Dead lawns are common in #BoulderColorado. That means that gorgeous landscaped yard is going to be brown and dead by the time you close.
Things to consider when buying a short sale: unusual charges and fees
5. Uncommon closing charges. One seller had allowed their water to be turned off by the water company rather than winterizing the property themselves. Its a big difference. Its one of those uncommon things to consider when buying a short sale. Because the water company used this opportunity to upgrade the water pit with the newest and most expensive equipment. And placed a lien on the house. Guess who pays that lien? Not the seller, they have no funds. And not the bank, they are taking a loss. That leaves you, the new buyer.
Buyers also have to pay to De- winterize and Re – winterize a property for inspection. And then De – winterize again when you take possession.
Owners will frequently remove anything not attached to the walls: appliances, ceiling fans, unique lighting and window coverings. Be prepared to invest more cash after you close to make your new home liveable.
6. One of the biggest frustrations from buyers is week after week goes by and there is no news. Read any real estate forum or ZTR (Zillow Trulia Realtor.com) and you’ll find buyers gripping about their agents and a short sale. No news is common. There is very little a Realtor can do to speed up a bank. Persistence does pay off in these transactions. Just know going in this is a slow process.
7. Short sales can be good deals. You are purchasing a home for a significant discount. Like any amazing sale, these deals only come around once in awhile. So be ready to pounce when an opportunity arrives. It is not uncommon to see short sales sell for full price.
Home Buying Deals
Short sales are deals. Deals usually have conditions. Work through all the conditions and you have a good deal. I recommend considering all the costs, fees and time involved – all the things to consider when buying a short sale, to see if this really is the best deal for you. If it is, lets get to work now finding your new home. Contact me today!!