i'm a buyer and i've found the perfect home, a potential short sale! Is this something I should stay away from. Should I prepare to offer?

Asked by Rita, Atlanta, GA Fri Sep 17, 2010

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14
Jim Swanson, Agent, Sacramento, CA
Fri Sep 17, 2010
A short sale is a reasonable way to purchase a home in this area. Keep in mind, any deal can fall through for a number of reasons. A short sale just has a few MORE ways it can fall through. I think the failure rate is about 70%, right now.

Short sales are getting more and more predictable. Most agents who have worked on short sales may have quite a few under their belt. Their offices may have dozens, or more. The collective knowlege base of these experiences has helped get many deals completed. However, there is not telling what the lenders involved in the sale will do.

As far as the offer, you should be prepared to pay market price for the home. You may make a lower offer, but when the lender who is losing out on this deal gets around to looking at the deal, they will most likely ask you to pay more, if your offer is too low. You can then bargain with the lender to get to a final price you can all live with.

Should you prepare an offer? I'd say, "Yes" if this is the right house for you, it may be the only way yyou can own it..
Web Reference:  http://www.saccityhomes.com
1 vote
Kamal Randha…, Agent, El Sobrante, CA
Sun Sep 19, 2010
Hello Rita,

Having done numerous short sales, I can tell you that each one is different. The waiting period, in most cases is much longer then an REO or regular sale. Then you have to consider in so many other factors such as how willing is the seller to stick it out through the entire short sale procedure. Most sellers just get fed up dealing with the lenders, they just walk away and let the home foreclose. Now that you have the bad side of it, please understand there are good deals to be had as well if you are patient. I've seen short sales close within 45 days when experienced agents were involved. Good luck :)

Kamal Randhawa
Broker
510-932-1066
0 votes
Michelle Tho…, Agent, El Dorado Hills, CA
Fri Sep 17, 2010
Make sure your Agent asks several questions before you put your offer in. As many have said, you have to be patient as it can take a long time to get an answer from the bank. If the seller can make their payments, and if they do not have a defined hardship, then it isn't worth the wait.. In addition, I have seen sellers file BK in the middle of an escrow and that can also kill your deal. If their listing agent doesnt coach the seller, and if the seller hasnt seeked advice from an Attorney, then they may not know. I mention these types of questions, as I have seen some agents take a listing without doing their research.
0 votes
Diane Lees, , Folsom, CA
Fri Sep 17, 2010
Hi Rita,

Most buyers, and some agents are not familiar with the Short Sale buying process. There are agents who don't even want to deal with them. Here is a site that will answer most of your questions. It will also tell you what needs to be done by each agent (selling and buying), and the buyer, to help increase the chances of closing a short sale.

http://homebuying.about.com/od/buyingahome/bb/BuyingShortSale.htm

Also, you must have an unlimited amount of patience. It can be a very long process.

Good Luck,

Diane Lees
Keller Williams Realty
Sacramento and Placer County
916-203-7563
0 votes
Lyle Wolf, Agent, Morristown, NJ
Fri Sep 17, 2010
0 votes
Dorene Slavi…, Agent, Torrance, CA
Fri Sep 17, 2010
Hi Rita,
You need a good buyer agent who can guide you through the process. Other then that...go for it!
0 votes
Samantha Lees, , Roseville, CA
Fri Sep 17, 2010
Hi Rita,

Short sales are a challenge, there is no denying that but if you found the perfect home, I would hang in there and be patient. First off, make sure you have an agent that has tackled short sales and has alot of experience dealing with the banks!
Since the bank has the final say in regards to the sale of the house, it is important that the listing agent puts together a strong packet to submit and the buyer shoud make an offer slightly above asking. Short sales already are great deals, especially if they are in good condition but submitting a strong above asking price offer will make yours stand out above the rest. Good luck!

Samantha Lees
0 votes
James Budrow, , Sacramento, CA
Fri Sep 17, 2010
There are many homes being sold as short sales that are in very good condition and this one could be a fantastic deal for you, however you should definitely use a knowledgeable real estate agent who is experienced with short sales to help you through the process. I also can't stress enough the importance of hiring an experienced and certified home inspector to perform a thorough inspection. Even if you aren't able to negotiate with the bank on the selling price, you will be more prepared to make your decision based on the home's true condition. There are so many things a qualified home inspector will be looking for that can alert you to very costly repairs later on. The condition of the roof, the plumbing, possible water intrusion, the HVAC system... The home may look beautiful, and it may not have any of these wallet-draining issues, but it is always better to go into a transaction with your eyes wide open rather than hoping for the best.

James Budrow
American Pride Home Inspection Service
NACHI Certified #NACHI04061811
877-424-8289
0 votes
Kyle Groves, Agent, Sacramento, CA
Fri Sep 17, 2010
All good answers...I agree with Tony and Elizabeth...Do your homework, on the property, the agent representing the seller, and the person you choose to represent you. The more you know, the less you'll have to fear, and you may just end up with a property you love!
Web Reference:  http://www.KyleGroves.com
0 votes
DeeDee Riley, Agent, El Dorado Hills, CA
Fri Sep 17, 2010
Rita,
Short sales are definitely obtainable but they are very difficult and in most cases take time so you need to be very patient. Make sure you select an agent that understands them well and has successfully closed some.
There was a great article in our local paper, the Sacramento Bee a week or so ago. Hopefully you can click on this link to see it. http://bit.ly/dpxm8R
Best of luck to you,
DeeDee
Web Reference:  http://deedeeriley.com
0 votes
Anthony Rueda…, , 95624
Fri Sep 17, 2010
If you love this home I would make an offer. Recently banks have been very cooperative when it comes to short sales.

There are a few things to keep in mind when it comes to short sales.

1. They usually take longer to close, unless the short sale has already been approved by the bank(s). If
there are multiple banks involved, the approval process becomes more complicated and can take even
longer.
2. How many short sales has the listing agent completed. An inexperienced short sale listing agent
can sometimes be make a short sale difficult.
3. Find an experienced short sale agent to represent you.
4. Usually, the seller has little to no money to make any repairs if needed.
5. Once offers are made, the seller will accept and send one offer to the bank(s) for their approval. Any offer
submitted to the bank is contigent on bank approval. The bank can counter even after the initial offer was
accepted by the seller.

If this home is perfect for you, I would prepare and submit an offer. An experienced buyer's agent will be able
help through the short sale process.

Please don't hesitate to call or email with any questions.

Good luck!
0 votes
Stephanie K, Agent, San Antonio, TX
Fri Sep 17, 2010
If it is listed as a short sale, be prepared to wait a while. It MIGHT be an excellent buying opportunity, but it could take time to get a response. Do you have an agent helping you? Has the seller applied to the bank for the short sale? There are so many questions! A short sale is when the seller is selling for less than what they owe the bank on the property and the bank agrees to absorb the difference. The seller is likely to accept your offer, but the bank also has to accept it and that is where the waiting part comes in, Both you and the seller need expert assistance. I am not in your area, but would suggest that you call someone who specializes in short sales. Call, text or email me if you want help finding someone
0 votes
jo, , Hollywood Hills, Los Angeles, CA
Fri Sep 17, 2010
"Potential short sale"??? it's not listed yet or what? You're leaving some details out. If you can fill them in, I would be happy to answer your question Rita.

Thanks,
Nicholas
0 votes
jo, , Hollywood Hills, Los Angeles, CA
Fri Sep 17, 2010
"Potential short sale"??? it's not listed yet or what? You're leaving some details out. If you can fill them in, I would be happy to answer your question Rita.

Thanks,
Nicholas
0 votes
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