Buying A Short Sale: Wait And Act With Caution

As new home buyers and seasoned veterans enter today's home buying environment, they find that there are some amazing deals on the market. They may feel like it's beyond their financial means even as they stroll through some of the more expensive neighborhoods they see, and they may end up coming across an offer that seems too good to be true. Then, of course, you learn that there are other considerations besides price, which is too good to be true.

Welcome to the wonderful (and very heartbreaking) world of short sales. 

When home buyers hear the term short sale, some of them squint a little and wonder what it is. Anyone who pays attention to current events and has at least some idea of what's going on in the real estate market will be somewhat familiar with this term. But as we all know, being familiar with one terminology is not enough to fully understand the prospect of making a short sale offer on a home.

As a result of failed short sale transactions, home buyers wait months to own a home; in some cases, their bank accounts are left with thousands of dollars in the balance, and before they know it, their home search is back to square one. There are countless stories to this day. They knew their second or third choice had been chosen months in advance by a buyer who was willing to pay a little more to secure the deal and move forward with the move. It is.

Still, short-sale prices can be so attractive that homebuyers may take the risk of making an offer. When a customer walks through the credit bureau's door and hints at a potential short sale offer, you never want to disappoint them, but you also want them to be well prepared for the journey that can await them. thinking about. Perhaps they will get lucky and the transaction will go smoothly. But, as the Boy Scout motto says, you better be prepared.

Information is gold today. 

If you want to build strong working relationships with your customers and ultimately have them refer their friends and family to you, share as much information as possible. It won't cost you more than the time it takes to talk to them. I recently saw a home buyer make an offer on a short-sale home, accept it, get it inspected, pass it, and then wait. waited. waited. waited. They waited months to close with escrow funds tied up in the house, hoping the deal would go through.

Their agent did not inform them of the possibility that the current owner could apply for and receive an extension from the lender. Week after week. It was very frustrating to sit around and watch everything unfold. These homebuyers were angry with their agents because they felt the agents were not being honest about what was going to happen. I don't know if they would have gotten away with it if they had known, but they would have at least wanted to have a choice in the matter. A short sale can be compromised by everyone involved in the process, from the bank to the buyer-seller. Accepting an offer can be your biggest challenge. If a buyer offers too much, the price that attracted him will no longer be a bargain. If you offer too little, you run the risk of being outbid. Of course, some people like this kind of adventure, but at the end of the day, most people prefer to keep things simple. and tame it.

When a customer comes to you to get pre-approved for a mortgage and you don't know much about short sales, that's when you shine. If you tell them what will happen if the worst happens, they will remember that you told them everything. Even if your business fails, they will still want to work with you.

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