Are you on the hunt for great deals on local homes? If so, you have probably heard about “short sale” homes, although it can take a bit of searching to find one. Just how do short sales work and when you might want to take advantage of them?
What Is A Real Estate Short Sale?
A real estate short sale takes place when a homeowner sells their home for less than they owe on it. This tends to take place in volatile real estate markets where a substantial price increase took place with a rapid price decrease following after. The homeowner is now facing a home with less value than their mortgage. They may approach their lender about a short sale, or the lender may force it on them. A short sale can take place even if a homeowner is still making their monthly mortgage payments on time, although that is somewhat rare.Stick With The Pros When Buying A Short Sale
If you are considering buying a short-sale home you will want to work with an experienced real estate agent. Short sales take place due to a variety of circumstances, few of which are positive. You will want a real estate professional who knows the ins and outs of the short sale process and will protect your interests. They can also help clarify what happens with the outstanding debt on the property.Mistakes To Avoid When Buying A Short Sale Home
Unfortunately, there is no shortage of stories about short sale buyers who made a poor decision when trying to score a great deal. First, ensure that all of the necessary research is done on the home, its title, and any liens against it. A home inspection is also critical as there may be structural or other issues that led to the decline in value. Finally, be sure to leave enough time for the closing process as it can take longer than with a traditional home purchase. Short sales have their pros and cons. If you are the one selling the home, you have likely been forced into a short sale due to your circumstances. If you are the one buying the home, you may be able to swing a great deal on it. To learn more about buying a short sale, give us a call today and we’ll be happy to help.Latest Articles
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