As you look at potential homes in the Conroe area, one of the homes may be listed as a short sale. In many cases, buyers tend to shy away from these types of sales largely due to the lack of understanding of the short sale process. The tips listed below will give you the edge when considering purchasing a short sale home.
Lower offers receive slower response: Potential buyers see “short sale” and make an offer tremendously lower than the value of the home, hoping to purchase the home at a steal. This process can flood the bank or mortgage holder with numerous lowball offers, and cause longer response time from the bank. The potential buyer may spend months waiting to hear on an extremely low offer, just to have the bank reject the offer. When deciding on the price to offer, consider the home’s value and what is realistic.
Continue looking at properties: The short sale process is not a guaranteed sale, so potential buyers should not focus on just one property. With the appropriate contingencies in the sales offer, it is legal to look and make offers on numerous properties. Before making an offer on a short sale home, speak with your agent to ensure your offer is written correctly and does not limit you to waiting months for a response on one home.
Approved Short Sale: An approved short sale is where the price of the home is approved by the bank. The approved short sale tends to be the quickest form of short sale since you are not waiting for the bank to approve the offer. This type of sale lets the potential buyer know from the start what offer the bank will accept, and can use this information to determine if the price meets their budget and needs of the home.
Must close on time: Short sales differ from traditional sales during the closing process. In traditional sales, an extension on the closing is typically granted, but for short sales, many banks will not grant an extension. As a buyer of a short sale property, you should set a goal to have the paperwork and your portion of closing completed a few days before the actual closing of the home. This extra time acts as a safeguard, helps to reduce your stress during closing, and allows time for unexpected items.
The decision to buy a home as a short sale is a big decision. I am qualified and here to help answer any questions that you may have. We can review your options together so you can make the best decision for you and your home. You can contact me, Laura Austin at (281) 789-2911 or (936) 321-2977, or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.
