Houses are getting to be extremely expensive, so if you see that there is a short sale on the market, you may be interested in buying it. In a short sale, the homeowner sells the property for less than they owe on the mortgage, which helps you get it at a fair price. The goal of this transaction is to get a deal on the property while still satisfying the current lender so that they will approve your offer.
Some people ask if a short sale is really worth the trouble. These sales can take longer to complete, so if you’re a buyer who needs a home right away, this may not be for you. However, if you can wait or just plan to invest in real estate, then a short sale could be a good deal.
What are the benefits of buying a short sale?
There are some benefits of buying a short sale. These include:
- Having less competition. In a hot market, opting to make an offer on a short sale may give you more opportunities to get your bids seen
- Having less risk than trying to buy a foreclosure, since most homeowners still live in the property
- Getting a good deal. Since homeowners are motivated to sell as soon as possible, they may list the home at a lower price or accept a lower offer
These are great benefits, but there are some downsides to short sales, too.
What are the downsides of buying short sales?
Some downsides of buying short sales include:
- A long wait, since short sales have to be approved by creditors
- That the home may fall into disrepair, especially if no one is living there
If you want to look into buying a short sale, have your attorney review any contracts or documents with you. That way, you’ll have everything you need to make an offer that a creditor is more likely to approve.