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What to ask when buying a short sale home

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Hey there, fellow adventurers of the real estate realm! So, you've set your sights on buying a short sale house in sunny California? Excellent choice! Whether you're a first-time buyer or a seasoned pro, we're here to help you navigate this exciting journey with a smile on your face. So buckle up and get ready for a delightful ride through the ins and outs of purchasing a short sale house in the Golden State!

  1. Do Your Research: The "How to Buy a Short Sale House in California" Quest Begins! Before embarking on this quest, arm yourself with knowledge! Dive into the world wide web and explore the wonders of short sales in California. Learn about the unique laws and regulations governing the process, and familiarize yourself with the terminology. Soon, you'll be speaking fluent "short salese" and impressing your friends!

  2. Assemble Your Dream Team: Every adventurer needs a trusty crew, and the same goes for buying a short sale house. Assemble your dream team of professionals, including a real estate agent experienced in short sales, a knowledgeable attorney, and a patient lender willing to guide you through any financial hurdles. They'll

What is the downside of a short sale on a home?

For a short sale to close, everyone who is owed money must agree to take less, or possibly no money at all. That makes short sales complex transactions that move slowly and often fall through. If you're a seller, a short sale is likely to damage your credit — but not as badly as a foreclosure.

How to negotiate a short sale house?

Here are some of the top tips on how to negotiate a short sale.
  1. Make Sure That the Short Sale Is Approved by the Lender.
  2. Hire a Real Estate Agent.
  3. Don't Submit a Low-Ball Offer.
  4. Conduct a Comparative Market Analysis.
  5. Use Cash or Get a Mortgage Preapproval.
  6. Limit Your Contingencies.
  7. Exercise Patience.

What's a good strategy for a buyer making an offer on a short sale?

Key Takeaways. Make sure you check comparable sales and offer an attractive earnest money deposit. You'll need to be patient with the bank and be ready to buy the home as-is without asking for repairs. A preapproval letter and short inspection period can strengthen your position with the seller.

What should I offer on a short sale?

Provide A Strong Earnest Money Deposit This will speak volumes as a serious buyer. In addition, real estate investors should put their earnest money deposit into a trust account once the short sale has been approved. Another important aspect investors should consider is their pre-approval letter.

Who benefits from a short sale?

Advantages and Disadvantages of a Short Sale Short sales allow a homeowner to dispose of a property that is losing value. Although they do not recoup the costs of their mortgage, a short sale allows a buyer to escape foreclosure, which can be much more damaging to their credit score.

How fast is a short sale process?

How long does a short sale take? A short sale can take as little as a few weeks or as long as several months. Because short sales are complicated transactions, they tend to be more time-consuming. Plus, the original lender needs to review the short sale offer to determine whether they will accept it.

Frequently Asked Questions

How long does the average short sale take?

The time frames for a short sale will differ from a traditional sale. Once you have an accepted offer, it will go to the lender/seller to accept and approve. The average timeline is about 60 to 90 days. That means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.

Which property would most likely qualify for a short sale?

Qualifications for a Short Sale
  • The home's market value has dropped: Hard comparable sales must substantiate that the home is valued at less than the unpaid balance due to the lender.
  • The mortgage is in or near default status: In the past, lenders would not consider a short sale if the payments were up to date.

Are short sale prices negotiable?

Short sale home prices are negotiable, but not in the same way as the sale price in a traditional purchase is. As the seller, you may be motivated to get rid of the property—but the mortgage lender must ultimately decide whether to accept an offer.

FAQ

What are risks to buyer in a short sale?
The main downside of buying and selling a short sale home is that the deal often falls through. The seller's lender may not agree to list it as short sale. As the buyer, short sale homes are usually fixer-uppers, meaning you'll likely have a lot on your plate once the deal goes through.
What is the short sale rule?
The Short Sale Rule is an SEC rule that governs when and how stocks can be sold short. Briefly, the rule dictates that once a stock falls more than 10% from its previous close, that stock cannot be shorted at the bid price for the remainder of the current trading session or for the entirety of the next session.

What to ask when buying a short sale home

What's the most difficult step when pricing a short sale? The most difficult step when pricing a short sale is getting the lender to accept the list price. Short sale is the sale of stock which the seller does not own and to accomplish short sale, trader borrows the stock on the margin for specified time and sell it when the price is reached or time expires .
How do you negotiate a short sale? Here are some of the top tips on how to negotiate a short sale.
  1. Make Sure That the Short Sale Is Approved by the Lender.
  2. Hire a Real Estate Agent.
  3. Don't Submit a Low-Ball Offer.
  4. Conduct a Comparative Market Analysis.
  5. Use Cash or Get a Mortgage Preapproval.
  6. Limit Your Contingencies.
  7. Exercise Patience.

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