what You Need To Ask Yourself Before Buying A Short Sale

So, you are considering buying a home that is a short sale. Hopefully your agent has told you about the process and length of time it could/can take to receive an answer from the bank. But, what questions do you ask to decide if it is right for you to place an offer in on a short sale? Is a short sale right for you?

As a Realtor I try to ask ALL my buyers certain qualifying questions. One of the most important ones in deciding if you can even consider a short sale is when do you need to move? Are you relocating here to buy a home? Has your existing home gone under contract and now you are in need of a place ASAP? That could be the most important factor when considering looking at a short sale. You may find the "perfect" home for yourself but cannot wait the time period it may require to receive an answer back form the bank.

Second, are you prepared to wait for an asnwer and possibly receive a NO or a counter offer? You could wait anywhere from three to six weeks and the bank may not accept your offer. They may come back at a number that is higher than you feel the home is worth in the condition it is in. Are you prepared to wait it out and possibly start over again?

Third, and probably one of the most important questions is; has the bank APPROVED the seller for a short sale? This may sound like a stupid question if the home is marketed as one. But do NOT take it for granted. Just because a home is marked as a short sale does not mean the bank will approve it. There has to be a legitimate hardship and finacial suffering on the seller to approve a short sale. You could be wasting a lot of time on a transaction that may never unfold.

Fourth, and probably most important if you negotaite a deal on short sale. Are you prepared to accept the home in the present condition it is in? Unlike bank foreclsoures where the home is empty; chances are the home is being lived in while you are negotaiting the short sale. You may not notice the stains in the carpet or the holes in the wall until after. Also, any repairs that need to be done on the home are completely up to you. The seller probably does not have the moeny nor is willing to do the necessary repairs to the home once you agree to a price.

Fifth, what type of financing are you getting? if you are receivng a VA or a USDA loan the lender may require certain repairs to be done to the home to approve the loan. Knowing that the home is being sold in "as is" condition will it pass the necessary inspections for you to buy the house? If the seller is not willing to do the reparis are you willing to get the repairs done prior to closing? Can you afford to do the reparis?

These are only five of many questions you can ask if considering purchasing a short sale. But this is a foundation for which depending on your answers to these questions will help you decide if looking at a short sale is right for you.



Dave diCecco

Realtor/Broker

www.davedicecco.com