So, you think you are ready to buy a short sale....

Today I thought we should talk about short sales from the buyer's point of view. It seems so simple when we go shopping for the new house.
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From the onset I make sure to warn buyers of the potential struggles of purchasing a short sale. In fact, if they are first time buyers I give them the option, but highly discourage them from even taking a look.
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First, time. The seller may "accept" your offer to purchase, but that means nothing!! He could accept it in ten minutes, and in ten months you could still be waiting for your new dream home. Why? Because even though the seller is the owner and has the right to sell, the bank has to approve the loss they will be taking. And the bank doesn't do that without a lengthy process and many bumps along the way.
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I have listings right now which have been in the negotiation stage for over seven months! When you are wanting to move to your new home, seven months seems like an eternity.
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Second, condition of property. What buyers must understand is the seller has no real vested interest in selling this house. Foreclosure is just as simple and by time they get to the point of letting the house go, a few more credit points doesn't matter to them. There is no money to do a list of repairs. Either the buyer needs to do them, or they need to accept the property as it is.
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Third, the offer you wrote and the offer the seller accepted may not be the final terms of the deal. Sure, you agreed and the seller agreed, but remember, the bank has to agree to take the loss. You could have waited five months, six months, even longer and then the bank can come back and say they want $10,00o more.
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Lastly, I have no control. Though I am very experienced at short sales from a listing perspective I can't talk to the bank or tell the listing agent what to do. What I can do is only show the buyer properties listed by competent listing agents. Yes, I do have a list of questions I ask the listing agent and if she doesn't have the right answers we will avoid the property.
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If you are in the market for a new home and are considering a short sale, give it a lot of thought. Many buyers think they are up for the wait and then sit by and watch all these other great homes go up for sale, accept offers, and close....while they are still waiting. The love they feel for the house they wrote on slowly starts to dissolve. So think hard and find a good buyer's agent.
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I can be reached at 541-606-2954.