Successful Short Sale Basics
The recession has had a few benefits for those looking for the next best deal, one of which is the short sale. Short sales are when home owners owe more than their homes are worth and sell them for less than is owed. For the seller a short sale is a way to avoid foreclosure. For a buyer a short sale can
be a great investment opportunity. The downside of a short sale is that the procedure can be lengthy and frustrating at times. A short sale is dependent on the lender’s approval and the lender’s involvement typically slows the entire process down.
Here are a few basics that can help you through this interesting real estate procedure:
- Know what the home is worth. A Realtor can do a comparative market analysis (CMA) and let you know what the home is worth. While you will probably pay less than the home’s value, submitting an offer that is too low will most likely be rejected by the bank.
- Find a real estate professional that has experience with short sales. A certified distressed property expert (CDPE) for example, is a real estate professional that has undergone specific training related to the sale of distressed properties.
- Be prepared. Just like buying regular real estate, have your money ready. If you will be getting a loan, do your mortgage homework before you enter the short sale process.
Above all, patience is a necessity when completing a short sale. The process can be a long one and waiting it out, while tiring, is unavoidable if you want the purchase to succeed.
Click here to read an article about short sales from NPR.
Sourced from: Kinetic Content Library
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