Expert Real Estate Agents Guide Buyers through the Short Sale Property Maze
Always on the lookout for great deals, many shrewd home buyers are viewing short sale properties as an opportunity to cash in on the current economic climate. If you are a buyer wanting to benefit from this market, using the services of a real estate agent who is experienced in working with banks on short sales
A “short sale” is property that is being sold for less than what the property owner owes the lender. While short sale real estate will be found on MLS (Multiple Listing Services) because the property has been listed by a real estate office, the lender is the one who is in control of the transaction. The bank will set the sales price, and will either accept or reject offers that prospective buyers make.
Buyers who think they will pick up “steals” by purchasing either foreclosed or short sale properties could be in for a surprise. Banks are not in the business of taking huge losses if those losses can be avoided. If a property is in good condition, and in a good neighborhood, odds are it will be priced in line with other properties in the area.
It pays to be aware that there are lenders out there that will purposely price a home under market value in order to incite a “bidding war” on a piece of real estate that is exceptionally nice or in a very desirable location.
This is not meant to suggest that there are NO great deals to be found, but rather that you may need the assistance of an expert real estate broker to help you determine which of the properties that have attracted your interest are the great buys.
From the buyer’s perspective, negotiating with a bank can be a very drawn out and frustrating process. Patience is nearly always required when you are in this market. While it is, of course, possible that your offer might be accepted right away, you may need to wait weeks or even months to get your offer accepted and your purchase closed. As lenders hold a power position in this sort of sale, it is not unusual for a bank to wait for multiple offers before accepting one.
Your real estate agent is your most valuable ally while you are in negotiations with the bank. An in-depth understanding and familiarity with bank required paperwork in order to get your offer moving through the process is certainly to be expected. However, your agent’s value doesn’t stop there. For instance, they can find out if your offer is competing against multiple offers, even while not knowing how your offer stacks up against the competition. Also, established relationships with bank personnel can never hurt in short sale offers.
There will be properties that are not in the best condition nor the best location. Lenders may be willing to loosen their lending guidelines in order to attract offers for these houses. However, for most properties, most lenders will follow conventional lending guidelines to finance a purchase, even a purchase of a short sale property.
Most lenders will ask that a buyer submit a loan application to the lender directly to ensure that the prospective buyer qualifies for the purchase. However, lenders cannot require you to finance the house through their bank. Be wary of paying upfront fees if your intention is to shop for financing options.
Legal questions can and will arise during a short sale property transaction, and real estate professionals are aware of this fact. Most agents will recommend that you direct legal questions to attorneys and tax questions to certified public accountants.
Pfeif and Associates is an experienced Fresno, CA real estate agency with a reputation for client satisfaction. They specialize in short sales, foreclosures and bank owned REO properties. Affiliated with Guarantee Real Estate, one of the top producing real estate companies in Central California. Powered by SEO 2.0 Services
Tags: buying short sale properties, short sale information, Short Sales
