What to Expect when Buying Short Sale Property
In your home buying journey, you will probably come across a short sale home and fall in love with it.
What is a short sale home?
A home owner can have their home approved for a short sale when they can’t pay for their mortgage. The sale is “short” because they are priced lower than the mortgage loan attached to them. Banks or lenders typically agree to a short sale so they can recover a part of the mortgage loan owed to them.
Before you decide to buy a short sale home, there are some things you need to understand about such properties.
This guide will help you manage your expectations:
Most short sale homes are fixer-uppers
In real estate parlance, a fixer-upper is a property in need of repairs. This is the common condition you will find among most short sale homes. The homes themselves may be low-priced but you may have to spend extra for interior and exterior repairs and upgrades from plumbing fixes to paint jobs.
This is why it is best to have a detailed inspection of a short sale house. The results of the inspection will give you a clear picture of what needs to be repaired, how much it will cost, and if the property is still worth the investment.
It takes longer to buy a sort sale home
The process of buying short sale properties is longer than that for standard properties. There is a lot of red tape involved in this process, so you may end up waiting for months before approval.
If you are not in a hurry, then a short sale home may be worth the wait. However, a short sale home may not be for you if you want to transfer to your new home fast.
Not all short sale homes are qualified
It is best to confirm whether a home is really approved for short sale or not. If the property has not been approved by a bank or mortgage lender, then its short sale classification means nothing.
There are rules to selling short sale property and many sellers and real estate agents do not fully understand these. That is why you must make sure that you have a competent real estate professional like us to be your guide if you find one that catches your interest.
Interested in short sale homes in The Triangle? I’m Matt, a real estate expert who can get you the perfect one. You can call me at 919-210-8388 or send me an email at MattPeedin(at)KW(dotted)com.