If you’re like most home buyers, you’ve heard of short sales. However, if you’re like most people, you’re not exactly sure what they are go – or whether you should be looking at homes being offered is short sales.
What is a Short Sale?
The term short sale has nothing to do with time. Instead, it has to do with the homeowners selling the home for less than the amount he or she owes the bank. This often happens when the home’s value has plummeted.
A short sale can only occur with the lender’s permission.
Are Short Sales Really Good Deals?
Short sales can be great deals for buyers, and they can help prevent sellers from adding a foreclosure to their credit histories.
Every situation is unique, so it’s tough to say whether you would benefit from looking at short sale properties. Some things to remember include:
- Short sales are put on the market by homeowners who can no longer pay their mortgage payments. In some cases, homeowners neglect routine home maintenance – particularly expensive maintenance – because they are trying to focus on making their mortgage payments.
- The short sale process can take more time than the traditional home sale process does. If you’re on a time crunch, buying a short sale may not be the right choice for you.
- You typically need to buy a short sale “as is,” which means the seller is offering it to you at a particular price point without making any improvements for changes.
- In many cases, because you are dealing with the lender instead of the regular seller, you’ll have to pay for inspections and repairs.
- Short sale purchase transactions can be complicated. It’s usually best to work with a Realtor® who has experience helping people purchase short sale properties to get the best possible outcome.
Are You Buying a Home in Hillsborough, Pasco or Pinellas Counties?
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