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Home Buying 101 – Things to Consider Before Dealing with Short Sales

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By : Faith Warner    99 or more times read
While hunting for potential homes, you finally come across a striking property with a cheap price tag. You pause in surprise and double check whether you are seeing something real or only imagining things. Checking its status, you eventually found out that it is categorized as a short sold home. You do some more thinking because you are not very familiar with short sales. What should you do next?

The best thing that you should do is to find out everything you can about purchasing short sales. This article would discuss important considerations before picking up the phone and giving the mortgagor a hasty offer.

Checking the price

Is the price reasonable enough, or does it seem absurdly low? One thing you should know about short sales is that not all prices are the actual ceiling prices. Some are priced extremely low because they are open to multiple offers. It is quite hard to make an offer for these properties because you will be competing with other interested buyers who can set higher bids.

The best way to come up with a good bid is to check out the property’s original market value. Set an offer that is close to the said value in order to increase your chances of beating other bids. If you have insufficient funds, better let this one opportunity pass and widen your options.

Hiring a real estate agent

Not all real estate agents have enough knowledge in dealing with short sales. Make sure that you would hire someone who has enough background experience in this area. Someone who specializes in this field has the ability to explain everything you will need to know about short sold homes. He can even provide you information about the seller’s lenders and make your transaction with them easier.

Cooperate with him while dealing with short sales. Tell him to call you for important updates. Make him feel that you are in this together. Do your part by listening to his advices and suggestions.

Making the right offer

Another way to come up with a competitive offer is to research more about the seller. How many lenders does he owe? How much does he owe each of them? This can give you a better idea of how much money his lenders might be after.

Make your bid meet the lender’s interests. Sit down with your agent and discuss the most reasonable bid that you should forward to the bank.

Verifying the seller’s requirements

The seller’s slow accomplishment of the complete short sale package could affect the pace of your purchase. If the seller has not yet passed documents such as his tax returns, income records, W-2’s, hardship letter, and bank records, your purchase will be very delayed. Talk to the listing agent and tell him to inform the seller that such requirements are mandatory in order to complete the short sale process.

These are the important things you should consider before adding a short sold home in your wish list. Always remember that knowing everything about this type of transaction will put you in a win-win situation and help you make the best decisions.
Phoenix AZ Homes, Phoenix AZ Short Sale Realty for Sale and 3-Bedroom Phoenix AZ Homes for Sale can offer you a whole deal of information about the real estate market. Whether you want to sell your house, buy a property or rent one, getting all the information that you need will give you a great advantage.

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