What Scares a Buyer about Short Sales?
What is so scary about a short sale? Not much really… But short sales are not as familiar to buyers and so they might have some big questions before they are ready to buy one.
How long will a short sale take?
Despite the name, short sales are not quick. A Short Sale can typically take 3-9 months to complete. Some even take over a year. This may seem too long to wait but the process can be well worth it if it helps you avoid foreclosure.
Why does a short sale take so long?
The reason a short sale takes so long is because you are basically asking the bank to lose money. They have a process, as annoying as it is to wait for, they will be sure to dot all their i’s before they grant a short sale. The process can be even more tedious if there are any issues with the buyer’s funding or offer. Your bank has to approve all aspects of the short sale including the offer, home inspection, buyer, appraisal and more.
Is it worth buying a short sale?
Many buyers are concerned when they see a short sale. And there are reasons to be more aware of what buying a short sale involves. But there are some very valid reasons to decide to pursue buying a short sale!!
–You Fell in Love with the Home!
This is obviously a good reason to pursue buying a short sale! People have the misconception that short sales are broken and worn down homes that are undesirable and that is why they are being sold as a short sale. But this is false! A home being sold as a short sale could be a very well loved and up kept home! And even if it needs some updates or extra care, it may be the perfect size and location for your family and is worth putting some equity into it!
–It is a Good Deal!
Some short sales are priced below market value and you are able to get them for less than they are worth. This is not usually the case because the bank is trying to make back as much as they can and not lose money! But they also do not want a house sitting for months or going into foreclosure. So as long as you have a good realtor who is familiar with short sales and negotiating with the bank, they may be able to help get the best price for the property!
Being under priced is not the only reason a home could be a good deal. If there are few homes on the market or it is a very competitive market with buyers snatching up homes as soon as they are listed, then a short sale may be a great way for you to go! Many buyers are uneducated about the short sale process and therefore will steer clear of them. Which will mean less interest in an otherwise competitive market!
If you are in a possible short sale situation and want to get more information about the process, please call us. We would like to help you understand what you need to know about a short sale and if you qualify! We have successfully sold over 350 short sales! Yours may be next!
Jennifer Young Homes
Keller Williams Realty