Understanding the Short Sale Process

Most of today’s home buyers will have come across properties that are being offered on short sale. Some may even consider buying a short sale home when they see how much they will be able to save if they do decide to purchase one. But as with any major purchase, buyers need to understand first what short sale is so that they would know what to expect if they decide to go through with buying a home that is being offered on short sale. A short sale is a real estate transaction wherein the lender (usually a bank) agrees to accept a price that is less than the amount owed on the mortgage. When mortgage payments haven’t been paid for 90 days or more, there is a possibility of foreclosure. Short sale is an alternative to foreclosure. Even though the lender stands the chance of losing money, it is still a better option than having the property foreclosed.

As a homebuyer, you will fully benefit from purchasing if you keep in mind a few important things. The bank (lender) will have the final say in what would be the most acceptable offer for the property. You, as the buyer, would have to come up with an offer which you think the bank is most likely to approve. You have to be very patient because short sale transactions usually take longer compared to other real estate transactions. You also have to be very diligent throughout the whole process. Inspect the house carefully. If possible have a certified home inspector look into the property. Short sale homes are sold on an ‘as-is’ basis. The expenses that will be incurred for repairs should be a major consideration when you decide on the final amount of your offer. If you have found a property that you really want to buy and it so happens that it is being offered on short sale, you can hire the services of a real estate lawyer that specializes in short sales. Your lawyer will be able to explain to you what to expect in a short sale transaction and can even guide you in coming up with what could be the most acceptable offer that the bank is most likely to approve.

 

*This is a sponsored post however, all the points and views are my own.

[ Tagged In ] ,

Short Sale and the Real Estate Opportunity It Offers

Are you in the market for a property to buy or invest in? In looking at the listings and opportunities real estate, you may have come across properties marked as ‘short sale’. What are short sales? When the bank (lender) sees that the mortgage of a particular property is 90 days overdue and may soon face foreclosure, it agrees for that property to be sold for less than the value of the mortgage. It is then being offered through short sale. The bank sees it as a better alternative than foreclosure where they stand to lose more money.

Understanding short sale

For homeowners who are no longer able to make mortgage payments, facing foreclosure or bankruptcy can be embarrassing and stressful. There are alternatives to foreclosures and one of them is short sale. Unlike traditional real state purchase where the terms of the sale must be approved by the seller, it is the bank that must approve of the terms in a short sale transaction.

Keep in mind that short sale properties are sold in ‘as-is’ condition. The bank will not perform any repairs on them. And since the seller is also financially strained, they wouldn’t have the resources to do repairs on the property. As a potential buyer of a short sale property, you can make a thorough assessment of the property before you decide on the offer that you will make. If the property needs major repairs, you can consider the total cost of repair when you decide on the final amount of your offer.

Be Patient

For some buyers, one of the major drawbacks of purchasing properties on short sale is the time it takes for an offer to be denied or approved. In some cases, it takes 2-3 months or even more. But why is there still a market for short sales and why are buyers still interested in them? Well for one, when a buyer wants a property, regardless of whether it is on short sale or not, he will make sure that he exhausts all possible ways just to be able to buy it. Buyers are also interested in short sale properties because of the great savings that they will get from them.

Find an agent

Your agent’s experience and knowledge in short sale can make a huge difference with how fast and successful your short sale transaction will be. Choose an agent that knows the ins and outs of short sale. He will be able to help you come up with an offer that is most likely to be approved by the lender.

Purchasing a property on short sale, even if it is being offered at a much lower rate than other properties, is still a major investment which is why you need to be cautious and thorough. And if you are really keen on purchasing a short sale property, make sure that you have a basic understanding of what short sale is and utilize the services of a competent and knowledgeable agent. You will then be able to benefit fully from buying a short sale property.

 

*This is a sponsored post for Schwartz Law Firm, however, all the points and views are my own.

Image courtesy of Master isolated images at FreeDigitalPhotos.net

[ Tagged In ] , ,

How to Choose a Real Estate Agent

 

Are you planning on selling or buying a property real soon? Although there are a number of factors that contribute to having a successful real estate transaction, one of the first things that you should look into is how to find a real estate agent. Although there are some sellers and buyers who usually find a kansas city real estate agent through recommendations from friends and family and have a pleasant experience with them, there are still those who are still to find the real estate agent that is suitable to their needs. Finding the most suitable real estate agent is something that you shouldn’t take lightly. Keep in mind that working with the wrong one would mean months of endless frustration and for sellers, a property that will remain unsold for a long time.

 

How do you go about picking a real estate agent to work with? Here are some things that you can consider when you’re in the process of selling or buying a property:

 

Make a short list. In any given city, there are thousands of licensed real estate agents. Choosing among them can be a daunting task especially if you haven’t had any transactions with most of them. You can ask around for referrals but don’t take everything that you hear about them with a grain of salt. There are still things that you need to consider before finally deciding which one to choose. You can also make your own research and start by visiting their websites. Again, don’t rely too much on what you see on their websites. Although you can find valuable information through their websites, you still need to keep an open mind and look into all the possible options.

Interview your prospects. After you have made a shortlist, you have to personally talk to prospective agents. Talking to them can give you an idea of whether that person is someone that you’ll be comfortable working with. It will also give you a sense of the agent’s professional attitude and working habits. Make sure that you choose someone who is willing to listen and can help you make sound decisions regarding the property that you intend to buy or sell. Don’t hesitate to ask them whatever concerns you may have such as how they intend to market your property or how they plan to negotiate with a potential buyer.

Buying or selling a property can be considered as one of the biggest financial decisions that you have to make and with the right real estate agent, the whole process will be made more gratifying for all parties involved.

*This is a sponsored post for Remax Mid-states, however, all the points and views are my own

[ Tagged In ] ,