Purchasing a short sale can be a great way for buyers to break into homeownership. While the process can take a bit longer than traditional home sales, buying a short sale is appealing to many buyers for primarily one reason: price.
While it’s possible to get a short sale at a great price, there is still homework to do. To follow is a list of things to avoid to make sure buying a short sale is as painless as possible.
- Don’t ignore property problems
If homeowners are facing foreclosure, they typically don’t want to leave their homes. Some take their anger out on the home or completely ignore structural and safety issues that should be addressed immediately.
- Don’t skip the home inspection
Tag along on your home inspector and ask for repair estimates when he or she notes a problem.
- Don’t ignore legal info
A typical disclosure statement would indicate if a house was in a flood plain or had any unpermitted renovation, but because bank-owned properties often sell as-is without disclosure, you may need to do a little extra research on the home’s status.
- Don’t ignore your timeline
Short sale and foreclosure homebuyers need to understand the sale won’t necessarily close as quickly as it would for a traditional home. The short seller’s lender must grant approval of either foreclosure terms or a short sale price that is less than the seller owes, so if you’re on a tight time frame to move in, a short sale may not be for you.
Ready to start checking out short sale properties in the Denver area? Contact Metrowest. We specialize in these types of transactions and would love to help you start the process!