You just found your perfect home, and you feel like everything is right including the price. But, what could be wrong with your ideal home? Maybe, it is being sold as a short sale, and that could present a major challenge if you want to become be the eventual homeowner. I’ve had plenty of experience with short sales in Chicago, and they do not usually end up pretty.
Short sales are different from other conventional real estate transactions since the property in question is usually listed at a price that is much lower than the amount of the outstanding mortgage debt.
Unlike a regular sale, the homeowner must obtain permission from the lender before proceeding with the transaction. Whether you are a veteran property buyer or a first-time home buyer, closing a deal on a short sale can be a challenging and stressful experience. We compiled the top three tips for buying a home in a short sale.
Consult a Short Sale Expert
First, you should consider getting help from a short sale expert who will help you identify homes that are being offered as short sales, help you determine a reasonable purchase price and also advise you on what to include in your offer to make it attractive to the seller.
Before you go for a particular short sale expert, ask them how many buyers they have helped purchase homes on short sales and how long they have been in business.
Good Deals Take Patience
Secondly, remember to be patient when engaging in a short sale deal. There is a high likelihood that most buyers will get impatient after several weeks of waiting and walk away from the deal leaving you in a strong position to negotiate.
If you understand that the initial offer on any short sale can take a long time before the lender accepts or rejects it, you will be in a better position to get a good deal since there will be no stiff competition. However, you should keep in mind that the lender might reject your offer.
Get a Full Loan Approval Early
Lastly, make sure that you get approved for a loan and not just pre-approved. Go through the trouble of getting approved if you want to stand a good chance of landing your dream home through a short sale.
Keep in mind that there will be multiple bids on the property and most of the prospective buyers will be pre-approved. Since you want to get the home at the best possible price below the market prices, being fully approved will make your offer stand out with the lender since you no longer face the risk of your financing falling apart at the last minute.
In Chicago over the last 12 years I have created a system to help homebuyers maximize their efforts, time, and find the home of their dreams with little effort. If you are in need of help finding a home, but do not know where to start, email me [email protected] and we will get you on the right track.