Does it make sense to buy a short sale?

 By Sandy Flores
There is currently an inventory in the housing market that brings together a large number of homes for sale, such as, traditional sales, foreclosed sales, and homes being sold as short sales. Buyers have many options to view, investigate and choose among a number of properties available for sale and are in an excellent position to buy a property, not only, for the existing inventory of homes, but also, for the best available mortgage programs with a low down payments. Interest rates are at their lowest levels, and credits and tax incentives offered.

If you are the first buyer looking for a good opportunity, you will find that a Short-Sale is a great decision. There is a very high number of short sales compared to other types of sales. Prices presenting these sales are, in many cases, lower and more attractive than the competition with other properties for sale accordingly.

Short SaleShort sale homes are those in which the owner has to negotiate with the bank’s permission to sell the property at current market value, whereas the principal balance is greater. In other words, a short sale allows you to purchase property for less than the amount the seller owes the bank. Generally, the process of waiting for bank approval on this type of sale can take four to six weeks average so be prepared.

This wait can be frustrating in many cases for the first buyers, because although your offer is accepted by the seller, bank approval is needed. If the bank rejects the offer, there is NO selling, and if instead the lender accepts your offer, you could get a good price for the property.

It is very important that you are very knowledgeable about the purchase of a property, and become a consumer-educated in general. Despite the enormous volume of information and high standards of professionalism available to support existing customers, poor decisions continue also appearing as often as before.

Research and compare the prices of homes that have been sold in the area in recent months, to determine if the value of the property that is being offered is economic, but also reasonable. Consider the added terms in your offer that you reserve the right to cancel without liability if a  pre-specified response has not yet been received of the acceptance of the short sale. 

Note: If the property is being sold in its present condition, it is advisable to have a professional inspection before close of sale because of the possibility that maintenance on the property is not familiar and you can get affected with the need of making many arrangements after closing.blogpic6

Short sales also require skill and patience by real estate agents. So if you decide to bid on a property that falls into this category, you should get advice from a professional specializing in short sales to help guide you and explain the process and its implications. Note that it is important to check that the professional advise him and have current license issued by the Department of Real Estate in the State of California, to be better able to help you decide which options would best suit you in particular. To check licenses, visit the website: www.dre.ca.gov/

 Remember………

that being informed, prepared and assessed before buying a property will give you the advantage and security of making a good investment, especially if it’s your first purchase. An informed decision is the best guarantee.

Stay Educated!

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