If you’re like many buyers, you may see a short sale property listed and immediately cross it off your list. However, if you work with a pro who’s experienced with types of sales you just might find this type of property is a great option.
What exactly is a short sale?
In a short sale situation, a homeowner wants to sell his or her property, but they owe more on their mortgage than the home is worth. In order to short sell a property, a homeowner has to prove to the bank that they’ve encountered financial hardship and are unable to pay the remaining balance. If they are approved, the bank will allow them to sell the property as a short sale instead of going into foreclosure, which can be costlier for the bank.
Pros of buying a short sale:
1. You could get a good deal
Banks (and homeowners) are often motivated to find a buyer for a short sale as soon as possible, so sometimes they’ll list the home at a low price so that it doesn’t sit on the market. That equates to savings for you.
2. Reduced competition
Short sales take a while to be finalized, and many house hunters aren’t willing to wait. That means that there are fewer people you need to compete with to buy the home.
3. It can be less risky than buying a foreclosure
Most homeowners continue to occupy the property while offering their home as a short sale. That means the occupants aren’t as likely to neglect or destroy the property before the sale is final, which can be the case with foreclosures.
If you’re interested in checking out short sale properties in the Denver metro area, step one is finding an experienced agent who knows the ins and outs of these types of sales. Metrowest specializes in these types of transactions – give us a shout and let’s start the process!