Funds Blog

Negotiating A Short Sale Purchase!

With the latest real estate developments, the industry is rolling out some major incentives for new homes owners and investors. A primary example is the ever evolving world of lending and the institutional guidelines and rules that are being implemented every day that will affect your loan. With some of these challenges many buyers get overwhelmed when they realize they haven’t even narrowed their search for short sales properties.

Just because a home is listed as a short sale doesn’t mean the market value is at the price it is offered so don’t fall for the label before completing your research. Just because the homeowner is paying back less than what they owe on the property, and maybe you like the property enough to offer that amount, does not mean the value is there. It is vitally important to make sure that your value is a fair value and not an inflated one, or you may find yourself exactly where the person selling you the short sale is in no time at all.

You can waste all of your time when purchasing short sales so don’t get caught up in that game, instead spend your time finding the real deals. This is because the process of approving the qualifications of a property viable for short sale takes a longer route than the usual. It is due to the fact that loan providers are simply losing when the borrower sells the house in a price that is lower than the mortgage amount.

They may even actively undermine your purchase contract by accepting competing contracts while they are looking at yours. Chasing short sales without making sure you have enough time to spend on them can end up costing you by missing your mortgage rate lock or any other important time limit.

The best route to go is to make sure your real estate agent has experience with not only short sales, but maybe even REO real estate and as many other facets of real estate as possible as this will help in the background of experience they can draw from for you. He is going to provide salient tips and information to guide you into finding a remarkable deal in this specific real estate transaction. It is always wise to have your real estate agent authorized on the sellers mortgage account so follow up with the bank is as direct as possible and doesn’t have to be filtered through very many people. The Better Business Bureau is another great place to confirm the reputation of the real estate professional that you are working with.

You may ask your real estate agent to help you with your search or you may prefer to stop by the nearest real estate office in your area. Most companies know the appeal of this property type to potential home buyers hence they are definitely preparing a list of homes under this category. Without a real estate agent, you can always simply go online and use realtor.com’s web-based search feature to find the listings that match your criteria as well.

Viable short sales are profitable investments for investors who have the right strategy and determination to find the best deals in town. As in so many other things, spending your time doing the ground work is not only rewarding but will ensure you are profitable for years to come.