Why you should stay away from Short Sales
Posted Oct 30, 2009 @ 4:36 pm, Viewed by 212 Visitors, Read 215 Times.Right now buyers believe that buying a short sale home is a great bargain, and for the most part, they are wrong. When an offer is made on a short sale, the banks are taking up to 120 days to approve it. As a buyer, you need to wait for that third party approval, and therefore you cannot lock a rate until then. You are taking a big risk by missing out on historically low rates.
What potential buyers should be looking at, is homes for sale by individual owners. You can still get a great bargain, and lock in for 30-45 days, and take advantage of super low rates, while also receiving seller help to cover your closing costs. Potential buyers should look for some common signs; uncut lawns, vacant properties, homes listed for over 90 days, etc. Buying from an individual seller has its advantages. First, you will hear back within days, not weeks, about your offer.
Instead of getting a decline, you most likely will get a counter-offer. During the process, if you need anything signed or changed, or an updated addendum, it can be resolved quickly, rather the 2 week process it may take with a bank.
Investing a little time came be a huge win fall for buyers in this market. First, you can avoid the delays and stress of trying to buy a short sale, and second you will be buying homes at around the bottom of the market.
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I have actually enjoyed the short sales. To be honest with you there are a few benefits also mentioned.
#1) You ultimately are helping the client right
#2) You can lock in your price and build 3-4 months of equity in many cases.
#3) If the home doesnt sell and the owner keeps the house and you worked hard for them you will most likely have the listing again when the market turns around.
#4) Dont get me wrong they are not fun but neither are the reo's. I have been lucky to have quite a few reo listings and they are a lot more work that many agents think on the listing side.
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Hey Alex, I have personally made the decision over a year ago to stay away from short sales. They are simply not worth my time, especially since I can not control the transaction. There are too many other homes in my market to sell that are far easier to sell.