I list a lot of short sales. Buyers often ask me why they should buy the short sale over another property. Here are a few reasons:
1. Most short sales sell at a 5-10% discount from the full market value of a standard sale.
2. Most short sales are occupied by sellers, who are still taking care of them (to some extent). They may not have the money to make major upgrades and repairs, but they are keeping the yard watered and making sure that the toilets work.
3. Many short sales are well loved homes. They sellers would prefer not to sell, but cannot keep up with the mortgage payments.
4. A good listing agent will only submit one offer to the lender for consideration. So, if your offer is accepted by the seller, then your offer is the only offer being seen by the short sale lender. At this stage you have NO competition, if you have patience.
5. You will get full disclosures about the property and the neighborhood from the seller. They have lived in the property and can provide you with this information.
6. The listing will tell you what you will get with the house and what the seller is taking. With my listings, I tell the seller that they cannot remove anything that is attached. So if you see a nice ceiling fan, that will be in the house when you move in, as well as the kitchen cabinets, granite counter tops, etc.
In contrast, bank owned properties:
1. Are often stripped of anything and everything - I have seen properties where the entire kitchen is just blank walls and plumbing stub outs.
2. The lender has no knowledge about the propert and is, in fact, exempt from many of the disclosure requirements that a seller must provide.
3. Banks will continue to collect offers until upper management has signed off on your offer. Until you have a fully executed contract back in your hand, you may not have a deal. (I have seen buyers do inspections, appraisals, etc. because the REO agent told them that the signatures are on the way from the bank, but don't worry, your offer was accepted. Then 30 days into the deal they are told they did not get the property because a higher offer or an all cash offer was submitted and the lender decided to take that offer, which according to the terms of their contract, they are allowed to do.)
So, if you are in the price range where distressed properties abound, then short sales are a good deal. Wishing you all the luck you need to find your new home. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty