Short Sales Anything But Short

Short Sales Anything But Short

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So you’ve been searching the market for your next home but nothing seems to be the perfect fit. All the places you’ve seen are either too small, too expensive, or don’t have the layout you’d like. Then suddenly you find it—the ideal home that fits all your needs. But then you find out it’s a short sale, and you don’t know how to (or if you should) proceed with an offer.

A short sale is when a seller puts their home on the market for a price that’s less than they still owe on a mortgage. This process is usually a seller’s attempt to avoid the lender seizing their home in a foreclosure situation, which can wreck their credit and prevent them from buying another home for several years. A seller must first be approved for a short sale, meaning the mortgage lender has to agree to take less than the seller still owes. A lender is often willing to participate in a short sale rather than seizing the home in foreclosure because it is much less expensive for them, even though they will be taking a loss when the home sells.

Buying a short sale can be a stressful process, especially if you’re selling your current home at the same time. Check out the following information to be sure you have the knowledge you need to make a big decision in a short sale situation.

Patience is Key

Even though short sales have the term “short” in their name, the process can take several months to finalize. So if you’re in a hurry to get into a new home because yours is sold or your lease expires soon, a short sale probably isn’t the best choice for you. Short sales can take a long time because they require hundreds of pages to paperwork to sift through, and multiple people are involved in the decision making process. The lender can also request more information from the potential buyer several times, which can add to the already lengthy process.

Repairs are Rarely Fixed

If a home has significant repairs that need to be made, don’t count on getting any assistance from the lender or seller. The lender is trying to net as much money as possible so they will not be motivated to help you out with a leaky roof or a cracked foundation. If you do get the green light from the lender to purchase the home, it is very important to have a home inspection before closing the deal. Because you’re going to be responsible for the repairs, make sure you’re willing and able to pay for them.

Agent Experience is Critical

Although the process of putting an offer on a short sale might feel similar to a traditional sale, there are many differences that affect the process. It takes a lot of skill to keep the sale moving in the best interest of the buyer, so it is not advisable to work with an agent who doesn’t have experience in these situations. Even though lenders may have the upper hand in short sale negotiations, an experienced agent can help navigate you though the process and potentially accelerate the process.

Price Can be Deceiving

Just because a home is listed as a short sale doesn’t mean you’re necessarily getting a discount. The lender isn’t going to give a home away because the seller is underwater on their mortgage; they still want to sell the home for what it’s worth. Short sales are typically listed at market value, so make sure your agent provides you with other home values in the area to compare it with. That way you will be able to determine if you’re making an offer because it’s really the right house for you, or if you were swayed to make an offer just because you thought you were getting a major discount.

The short sale process can be time consuming and stressful, but worth it in the end if you get the perfect home for you. Keep these tips from The Adler Home Team in mind during the process so you know what to expect!

About the Adler Home Team

When looking to buy or sell in Northern New Jersey, you may rely on The Adler Home Team and their intimate knowledge of the distinct communities throughout the region.Jeff & Debby Adler continue to lead with contribution and have served over 1,100 families in their 20 year experience in Northern New Jersey. Through their combined efforts, this team of eleven professionals is very diligent in serving a full array of clients from first time buyers to those seeking their expertise in Residential, Condos, Townhomes,Luxury, New Construction,Relocation, Short Sales, Foreclosures and Rental Properties.By accessing the very best in technology, current market data and creative marketing applications, The Adler Home Team takes every measure to ensure that their clients are educated and provided with the critical insights that meet their specific requirements. They teach, lecture and train at the national level on negotiation skills, marketing and team building. The Adler Home Team is most proud and thankful for their strong referral business that confirms their talents, creativity, professionalism, diligence, knowledge, and outstanding integrity. The Adlers look forward to forming a partnership with their clients to help them reach their goals and make smart business decisions. So, when it comes time for you, a friend, or a family member to make a move, trust the Adler Home Team to win for you. Google View all posts by The Adler Home Team →

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Phone: 201-819-3309
Dated: September 28th 2015
Views: 155
About Jeff: When looking to buy or sell in Northern New Jersey, you can rely on The Adler Home Team and their in...

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