The term “short sale” is a bit misleading as these types of transactions don’t tend to happen as quickly as traditional home sales. Still, in crowded markets with rising prices, including short sales in your home searches can help expand your options and land you a really good deal on a house.
What exactly is a short sale?
A successful short sale means the seller’s lender is willing to accept a discounted payoff to release an existing mortgage.
Advantages of buying a short sale:
- 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 just sit on the market. That means that you can sometimes get a good deal.
- There’s less competition.
Short sales can 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. In areas where there are a lot of people who want to buy and not a lot of homes for sale, bidding wars can drive up prices, so less competition can mean a lower price.
- 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. In addition, because these homes are not vacant, there’s less opportunity for vandals to cause damage to the home.
If you’re considering checking out short sales in the Denver area, the first thing you want to do is find an experienced pro to work with. Give Metrowest a shout today – we’d love to help you start the process!