Persons interested in acquiring a home or property quickly and for potentially less money than such a transaction would cost under normal circumstances might wish to partake in a short sale.
Definition Of A Short Sale
Short sales are performed to benefit both the bank or financial institution that holds the property proprietor’s mortgage, as well as the homeowner.
By engaging in this process, the financial institution in question avoids the vast expenses related to the repossession or foreclosure processes. The homeowner avoids the credit-damaging that often accompanies foreclosure. In most instances, the mortgage holder and property owner agree to sell the property for less, sometimes considerably less than its established market value.
Tips For Navigating A Short Sale
Short sales could provide a means and process for individuals seeking to purchase a home or a real estate investment. Adhering to the following tips might make the experience of said purchasers more fruitful:
Understand That The Process Is Different
It is important for all potential short sale property purchasers to realize that the process differs from that or sales occurring under more typical real estate market sales.
During typical real estate transactions, the property’s potential buyer negotiates with the seller and his agents (if applicable). In short sales, the prospective buyer executes the transaction with the mortgage holder. The property owner can be involved in the process. However, no transaction can be completed without the bank’s approval.
What You See Is What You Get
Short sale properties are typically solid in “as-is” condition. This means that the home or property could be in poor condition and require a significant amount of upkeep.
Experienced Real Estate Agents Could Prove Valuable
There is a significant degree of minutiae involved in a short sale that is not typically associated with typical transactions. Therefore, short sellers or purchasers are strongly advised to retain the services of an experienced real estate agent who has sat in on numerous short sales and possesses a vast knowledge of the process.
The Process Can Drag On
The purchase phase of a short sale property can last for longer durations than properties bought under typical circumstances. This is because the mortgage holder has the final say and will wish to review any potential sale to ensure that the effort pays reasonable financial dividends.