When a lender and a seller agree to release a mortgage for an amount less than what's owed on a house, it's called a short sale. Should you have any questions about real estate in Austin, Texas, contact me here or e-mail me.
Are short sales bargains?
Occasionally. Many people hear the words "short sale" and routinely think of a seller that is in financial trouble and needs to sell their house fast to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have depreciated. In cases such as these the "bargain" price may in fact be in line with true market values rather than below.
What's involved in buying a short sale?
Always do your research before making any offers. Using an experienced REALTOR® from Pearl Jones, your Austin Real Estate Professional to help you research a property can help you make informed decisions. We can help learn to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this information can help you make a decision about how much to offer.
Use a REALTOR® with short sale experience. The real estate agents at Pearl Jones, your Austin Real Estate Professional can help expedite the transaction and make sure you're protected. Don't allow inexperience to slow down the closing process. Put our experience and knowledge to work in your favor.
Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Know that many short sales will not close in the customary 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the sale terms. A lot of the time your offer will be presented to a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home protection warranties, buyer credits and allowances, and closing cost concessions are typically not up for negotiation when dealing with a short sale. The lender will be selling the property as seen which means the lender will not be paying for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Pearl Jones, your Austin Real Estate Professional, when we write an offer, we're looking out for your interests first and will always suggest that you make your offer contingent upon the outcome of the inspections.
If you're ready to buy, whether it be a short sale or a typical home sale, Pearl Jones, your Austin Real Estate Professional is available for you. Utilize our experience and knowledge of real estate to be certain you are getting a fair deal and remain protected during the complete process.
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