Purchasing a home that is being sold by the seller as a short sale can provide a buyer with a wonderful opportunity but keep in mind these things:
The short sale properties quite often are priced below market value. Wow, so imagine investing in a property that has the possibility of instant equity. A number one reason and benefit of purchasing a short sale home.
The seller is a distressed homeowner and will not have any money to contribute to closing, repairs, etc. And the lender does not allow the seller to have any money to contribute. With this in mind, buyers cannot expect the seller to contribute any money in any way.The buyer will contribute all money to transaction.
Buyer will be purchasing the property “As is”. This means any and all repairs that the buyer sees are needed will be their responsibility.
Buyers must present their offer to buy being already approved by a lender. Not pre-qualified but pre-approved; meaning a lender has committed to funding their home purchase. If they’re serious about purchasing a short sale home make sure they’ve done all their homework ahead of time.
When their offer has been submitted to the seller’s lender in the sales contract, this approval process can take on an average between 30-45 days; often longer. It’s critical that the buyer understands this time process for much needed patience. Sell Your House Fast Orland Park
Once their offer has been submitted to the seller’s lender and they accept their offer, the buyer will typically have about 30 days in which to complete their funding for closing. Another reason why #4 above is so critical.
Having been informed of such expectations during a short sale, buyers and buyers agents will sign a disclosure document acknowledging that all is understood. We do not want any surprises to any party.
Done properly, short sales can benefit all parties involved – it can be a great thing!