Short Sales are becoming one of the best ways to buy homes at a great value here in Southern California
. As the number of foreclosures is going down the number of short sale homes for sale is coming up in record numbers. Short Sale Homes are where you will find homeowners who are in distress and can no longer afford to live in their home. Instead of letting the home go into foreclosure they have decided to short sale their home to the bank. Short Sale homes are typically price 3-5% below market value in order to generate an offer that can be submitted to the bank.
When buying a short sale a couple of key things is important to understand. A lot of real estate agent will continue to advertise their short sale listings even after they have received an accepted offer on the property. This is done due to the large number of short sale buyers backing out after a couple months of waiting. The key thing to ask a real estate agent when buying a short sale home is to see if the owner has accepted any offers that have been submitted to the bank. Since only one offer can be sent to the bank you will want to know if you will be the offer that has been chosen to be sent to the bank or will it become a back-up offer. Being the first offer in on a short sale makes all the difference in the world when buying a short sale. Many short sale buyers will make multiple offers on multiple properties here in Southern California and take the offer that is first approved by the bank. This can be a frustrating part of the short sale process for the sellers since many short sale buyers due back out for one reason or another.
The second key thing to remember is that when you do get the approval on the short sale the bank will be selling them home in an "as-is" condition. Typically, there is no money available for repairs so be ok with the current condition of the home you are buying. Most banks will give you around 30 days to close on the home once the approval has been recieved so make sure your Lender has all the necessary documents in order to close on time.
Buying a short sale can be a long and frustrating process. Make sure you real estate agent keeps you updated regularly and knowing that the bank is reviewing your offer will make your success rate go up when buying a short sale.