I'm sure that to some degree all aspects of your question may have been answered through previous responses, however, as a Realtor who works almost exclusively with distressed properties e.g. "short sales" I would highly recommend you work with an agent that knows the in's and out's of short sales. They are an incredible investment no matter how you want to look at it. The big concern with buying a short sale is that it takes, on average, anywhere from 70 - 120 days simply to negotiate a short sale and then another 30 - 45 days to close it, depending your time frame requirements as a buyer.
Always be sure to inquire through your agent whether or not the Seller/Listing Agent is using a professional negotiating service. This is key when it comes to attempting to close on a short sale purchase. At times this might be an added expense to you, as the Buyer, however, the easy way to work around that is to subtract those fees from the purchase price. It is to the Seller's benefit NOT to receive a full price offer. Perhaps that sounds counterintuitive but here is my reasoning; if a Seller receives a full price offer and submits it to the bank, the bank will be inclined to request more money through a counter offer. If, on the other hand, you as the Buyer submit a lower offer (80% - 85% of the list price) the bank will still most likely counter your offer but it will almost always be less than 90% of market value. This creates a win-win situation for both parties; you receive a GREAT deal, and the Seller is able to move on with their life.
If you can help it, always seek out a "pre-approved short sale". The example listed above is where a knowledgable Realtor and an experienced negotiator are key to your success!
Thanks for reading!
Justin W. Richards, Realtor
Managing Partner - Premier Lots, LLC
http://bellevueshortsaleexperts.com
justin@assetrealtygroup.com
425-765-8088
- Tue Sep 29 2009, 11:02