Contrary to their name, short sales can often take longer to close than traditional transactions. Still, if you’re on a somewhat flexible timeline, these types of properties can actually be a great deal for buyers. As with any type of purchase, it’s important to know what you’re in for along the way. Here we’ll give you a rundown of pitfalls to avoid if you’re considering buying a short sale.
What is a short sale?
A short sale is when a house is sold for less than what the homeowner owes on it, and the lender does not get all of its money back. This type of sale can only happen with the lender’s permission.
Mistakes to avoid:
1. Skipping the inspection
A thorough inspection is the only way you’re going to fully understand the work that will need to be done after you purchase the home. Skipping this step could result in costly (and unexpected) repairs down the road. Ask for repair estimates when an inspector points out a problem, or do some research of your own later.
2. Being on a tight timeline
Short sales won’t close as quickly as a regular home purchase. The short seller’s lender must approve the foreclosure terms or short-sale price, which will be less than what the seller owes. Even so, banks may be slow to respond, so patience is key during the process.
3. Not knowing when to move on
Despite a horrible inspection or costly fixes, some people fall in love with a particular house – even a short sale. It’s important to be flexible with your options and understand what you truly can or can’t afford in terms of improvements or renovations. Don’t fall too hard for a house that won’t absolutely work with your budget.
If you’re considering purchasing a short sale home, the best thing you can do is contact an experienced pro to help you start the process. Metrowest specializes in these types of sales – give us a shout today and let’s get started!