Short sales can be a fantastic deal for buyers – especially in areas where inventory is low (like Denver!) While they can take a bit longer than tradition sales, the process isn’t all that different or more challenging than purchasing any other property – if you avoid common mistakes. Below are a few things you’ll want to avoid as you’re searching for a short sale that meets your needs.
- Ignoring property problems – Short sales are often lived in – as opposed to foreclosures, which are typically vacant – but if a homeowner can no longer afford mortgage payments, they likely could not afford to address necessary repairs that popped up over the years. If you see or suspect problems, don’t ignore them. It’s important to be realistic and know that if a home has too many problems that will be too costly to fix, it’s probably not the right choice for you.
- Skipping an inspection –Cosmetic problems are easy to identify and fix; however, there may be unseen problems in the short sale you’re considering. You’ll want to hire and experienced inspector to check out the property before you sign on the dotted line. You’ll have to pay for the inspection, but it’s truly a small price when you consider the costly problems that may be lurking below the surface.
- Having a tight timeframe – Despite their name, short sales can and do typically take a bit longer than traditional sales. It may be a few extra days, weeks or month, depending on the property and lender. The short seller’s lender must grant approval of either foreclosure terms or a short sale price that is less than the seller owes. This can take a bit of time, so remember to be patient.