Short Sale Myths and Truths for Buyers

It is truely a buyers market. But when it comes to short sale properties, the buying experience can become  frustrating if you are not fully informed. Here are a few short sale myths and truths

1. Myth-Short Sale means the property can close fast
Truth- While every bank has their own system to handling short sales you should anticipate atleast 3 to 6 months for approval from the sellers bank. And be aware that some short sales have dragged out for over a year.
2. Myth- I can get a better price if I purchase a short sale
Truth- You can get a the home that you want at a fair price but not necessarily less than current market value
3. Myth- The short sale listing says APPROVED so we will be able to close faster
Truth- What was approved? The sellers bank approved that they would consider a short sale? The price is approved? In either case, if you have a definite timeline as to when you need to be in a home that is less than 6 months out, you may want to look at other properties before writing an offer or have a back up plan in place.
4. Myth- The list price is the sell price, so the sellers bank has to take that price
The list price on a short sale is not necessarily the price that the bank will agree to. Bankers are not Realtors and typically will not discuss prices with the sellers or sellers agents until they have received an offer and done their own market research. At that time they will either accept the offer or counter offer. If you are looking at a short sale that is listed below market value, you need to be prepared that the bank could counter offer at a price higher than the list price.  
5. Myth- Any short sale listing that goes under contract will eventually close
Only about 30% of short sales actually make it to the closing table in Bay County. This is why you need a Realtor that is knowledgeable about short sales. An experienced short sale agent can prequalify short sales so that you know you have the best opportunity to actually close on the home. If you are considering purchasing a short sale make sure to ask your realtor if they prequalify short sales and if so, what is their process. 
6. Myth- If I purchase a short sale I could be responsible for liens attached to the property
The approval letter from the sellers bank not only approves the purchase price but also includes the banks agreement to release the lien on the property so that you can purchase the property free and clear. However,  It is very important that you have a title search/exam done prior to closing in order to make sure that their are no other type liens attached to the property.

I hope you find this helpful. Please give me a call if you have any questions at 850-814-8259 or visit my website www.BrookSellsPC.com. I'd love the opportunity to help you find a GREAT home.