Short Sales
If you're a HOMEOWNER considering a short sale to sell your home, click here.
If you're a BUYER, please read the following Short Sale Guide.
If you are searching for a home in today's real estate market, it is highly likely that you will come across listings that are "distressed properties" (short sales, bank owned foreclosures). It is important to understand that while there are many benefits to buying these types of homes, there are also some distinguishing characteristics that may be drawbacks to you.
The truth is, short sales can be very challenging transactions. If you are considering buying a short sale, it's important that you work with a Realtor who has much experience in successfully working with short sales. There is no cost to you to work with someone experienced in short sales; however, working with someone who doesn't have the short sale skill set could be very costly.
We have experience supporting both buyers and sellers with short sales. It would be our pleasure to work with you.
If you're a BUYER, please read the following Short Sale Guide.
If you are searching for a home in today's real estate market, it is highly likely that you will come across listings that are "distressed properties" (short sales, bank owned foreclosures). It is important to understand that while there are many benefits to buying these types of homes, there are also some distinguishing characteristics that may be drawbacks to you.
The truth is, short sales can be very challenging transactions. If you are considering buying a short sale, it's important that you work with a Realtor who has much experience in successfully working with short sales. There is no cost to you to work with someone experienced in short sales; however, working with someone who doesn't have the short sale skill set could be very costly.
We have experience supporting both buyers and sellers with short sales. It would be our pleasure to work with you.
What is a short sale?
A short sale is when there is more debt owed on the property than the property's value. In a loan default situation (pre-foreclosure), the lender may be willing to agree to accept less than (or "short") the amount owed as payment.
What's the difference between a 'regular' home purchase and a short sale purchase?
Short sales have some key differences from a regular residential real estate transaction. Here are some key points to consider:
A Short Sale:
*Sold As-Is (no repairs)
*Requires approval from the seller, the seller's lender and the loan investor if applicable
*Time Consuming: It can take 2-4 months on average to complete a transaction
*No guarantee your offer will be accepted
*Requires a Short Sale Addendum to be included with your offer
The Benefits of Buying a Short Sale:
*Motivated sellers
*Home may be located where you want to live
*Property disclosures available
*Most often in better condition than bank-owned properties
*You could possibly buy your dream home under market value
A Short Sale:
*Sold As-Is (no repairs)
*Requires approval from the seller, the seller's lender and the loan investor if applicable
*Time Consuming: It can take 2-4 months on average to complete a transaction
*No guarantee your offer will be accepted
*Requires a Short Sale Addendum to be included with your offer
The Benefits of Buying a Short Sale:
*Motivated sellers
*Home may be located where you want to live
*Property disclosures available
*Most often in better condition than bank-owned properties
*You could possibly buy your dream home under market value
Are you a good candidate to buy a short sale?
YES! If you:
*Don't have a home to sell
*Are willing to be patient
*Don't need a home immediately
*Are not looking for an investment property for a 1031 exchange
*Can afford to make any necessary repairs or improvements needed
*Don't require large closing cost contributions
*Are prepared for a rejection to your offer or a counter offer proposal based on seller's lender requirements
*Are prepared that a response to your offer could take months
*Don't have a home to sell
*Are willing to be patient
*Don't need a home immediately
*Are not looking for an investment property for a 1031 exchange
*Can afford to make any necessary repairs or improvements needed
*Don't require large closing cost contributions
*Are prepared for a rejection to your offer or a counter offer proposal based on seller's lender requirements
*Are prepared that a response to your offer could take months
Can I make offers on multiple properties since I have to wait so long?
We do not recommend it. You need to show the seller and the bank that you are a serious buyer, committed to the property. Also, making multiple offers can be financially risky. What we CAN do is include language in your offer so that you aren't tied up in case you decide to move on.
Ready to Start Looking?
Let's find you a home! Contact us today
Kevin McGinnis (415) 725-1911
Spiro T. Stratigos (415) 225-6412
Spiro T. Stratigos (415) 225-6412