- Some of the best deals are found in the Short Sale category. The Seller is ultimately the Bank, so they are not trying to squeeze every dollar out of the sale, unlike a traditional Homeowner. $10,000 to $15,000 dollars would make a much bigger difference in our lives, compared to the balance sheet of Bank of America. Banks will not give houses away, but these homes are usually priced “under market”.
- The Seller is usually still in the property, so they have to disclose any known defects and/or important information about the home. Also, a lived in home is usually going to be in better condition than a vacant home….usually.
- There is not as much competition because some Buyers (and Realtors) do not want to look at Short Sales because they do not want to wait for the approval process.
- They take longer. You will need to be able to wait it out, typically 90-120 days. We have done some in less than 30 days, and have had some take over a year. As the Buyer, you don’t have to wait around. Depending on how you write the Contract, you can give the Listing Agent 45-90 days to get an answer from the Bank. We actually prefer to give them 90 days, if the deal is a great one. If it seems to be going nowhere and you find a better deal, you can go for it.
- Things change -Bank by Bank, case by case. Sometimes it feels like the run around…you have to be mentally prepared for that.
- The Bank won’t pay for some items that are customarily paid for by the Seller in a traditional sale. Termite, Natural Hazard Disclosure and delinquent HOA’s are some items that may or may not be covered. We always ask for it, unless the Listing Agent has an approval that already spells out the terms that are acceptable.
- They are usually under market price.
- Quicker than a Short Sale and the Bank usually wants them closed fast, 15-30 days!
- The good ones go quick and there is heavy Investor (cash Buyer) interest, which means more competition.
- The Seller is exempt from Disclosures because they never lived in the property.
- Many times these properties need the most work.
- These are usually Owner occupied and Disclosures are required.
- The Sellers have a monetary stake, so these homes are typically in good shape and they will want their home to be as appealing as possible.
- The Seller will pay the customary closing costs.
- There is a quicker reply time with the Agent negotiations, and Escrow time frames are also negotiable (typically 30-60 days).
- Sellers want to get every dollar they can…these homes are most likely to be listed at market price.
- Sellers are emotional about their home…that deck they built with their own hands adds more value in their mind, than if the Bank is making the decision (etc, etc).