Why would I want to consider buying a short sale home?<\/h2>\n
The primary appeal of buying a short sale home is the potential to secure a great deal. Since these properties are often sold below market value<\/a>, you might be able to purchase a home at a significant discount.<\/p>\n For example, consider a scenario where the homeowner originally bought the property when market prices were at their peak. If the market has since declined, you could step in at the right time and purchase the home for much less than its original value, potentially saving tens of thousands of dollars. However, it\u2019s important to remember that while short sales can offer bargains, they often come with additional complexities, such as longer processing times<\/a> and the need for lender approval.<\/p>\n Another advantage of buying a short sale home is that typically, there\u2019s less competition from other buyers. Unlike <\/span>foreclosures<\/span><\/a>, which might also offer bargains, short sale homes allow you to tour the property before making an offer. This gives you the opportunity to assess its condition firsthand. Additionally, with the seller\u2019s consent, you can arrange for any <\/span>inspections<\/span><\/a> you deem necessary, even before submitting your offer. In many cases, short sale homes are also in better condition than foreclosed properties, which may have been neglected or left vacant for extended periods.<\/span><\/p>\n \n \n Jessica Wallace<\/strong> Currently accepting new clients<\/span>\n <\/div>\n<\/p><\/div>\n As-is properties: Short sale homes typically are sold in as-is<\/a> condition, meaning the buyer is responsible for any necessary repairs<\/a> or updates. Additionally, lenders involved in a short sale may be reluctant to cover all the seller\u2019s closing costs<\/a>, as they are already incurring a financial loss on the property. This can lead to buyers needing to shoulder more of the closing expenses<\/a> themselves.<\/p>\n \u201cThe only reason you\u2019d want to buy a short sale is you\u2019re going to get a good price on it,\u201d Wallace says.<\/p>\n Patience required: <\/strong>Buying a short sale can be a real test of patience. The process can take a long time because you\u2019re not just waiting for a response from the homeowner, but also from the bank or lender, which often involves lengthy approval procedures.<\/p>\n \u201cA short sale is short on money, but very long on time,\u201d Wallace says. \u201cI\u2019ve seen it take as long as a year. You\u2019re going to be waiting a long time, and if you have your heart set on a property, you can be very disappointed.\u201d<\/p>\n That\u2019s because even if the homeowner has approved the offer, \u201cthe lender can come back six months later and say, \u2018No, we will not accept this price.\u2019 So you\u2019re going to be waiting a long time \u2014 and you might never get approval.\u201d<\/p>\n Legal considerations: <\/strong>When buying a short sale, it\u2019s essential to be aware of the potential legal considerations that may arise during the process. One critical aspect is understanding the possible tax implications<\/a>. In some cases, forgiven debt from a short sale might be considered taxable income, so it\u2019s wise to consult with a tax professional to avoid unexpected tax liabilities. Additionally, ensure you review all contractual terms<\/a> carefully, as short sales can involve complex agreements and stipulations.<\/p>\n It\u2019s also beneficial to seek legal advice to navigate any potential complications. An attorney experienced in real estate transactions can help you understand your rights and obligations, review documents<\/a>, and address any issues that may arise with the lender or seller. Being proactive about these legal considerations helps ensure a smoother transaction and minimizes the risk of legal or financial surprises down the line.<\/p>\n If you\u2019re considering buying a short sale in your area, your first step should be to find a skilled buyer\u2019s agent<\/a>. Wallace says that an experienced, well-established agent who knows the area can guide you through the complexities of the short sale process, help negotiate with lenders, and increase your chances of a successful purchase. Use HomeLight\u2019s free agent match tool<\/a> to discover how we can help you find the perfect Realtor\u00ae for your needs, streamlining your buying process for the best outcomes.<\/p>\n Many brokerages offer specialized lists of short sales to clients who express interest, so ask your agent if their brokerage provides this service. Also, talk to your agent about the possibility of gaining access to the <\/span>Multiple Listing Service (MLS)<\/span><\/a>, which will allow you to <\/span>search for short sale homes in your local area<\/span><\/a>.\u00a0<\/span><\/p>\n You can search for short sales directly through the MLS, where they are often listed and sometimes clearly marked. Listings may explicitly state \u201cshort sale,\u201d or use other indicative phrases such as \u201csubject to bank approval,\u201d \u201cnotice of default,\u201d \u201cheaded for auction<\/a>,\u201d or similar terms that reveal the property\u2019s status.<\/p>\n Another way to locate short sales is by working with an agent who specializes<\/a> in them. These listing agents represent lenders and typically handle multiple short sale listings at once. They often hold certification in Short Sales and Foreclosure Resource, or SFR<\/a>, from the National Association of Realtors. However, even if you find a short sale through such an agent, it\u2019s advisable to have your own buyer\u2019s agent<\/a> to represent and protect your interests throughout the process.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" Why would I want to consider buying a short sale home? The primary appeal of buying a short sale home is the potential to secure a great deal. Since these properties are often sold below market value, you might be able to purchase a home at a significant discount. For example, consider a scenario where […]<\/p>\n","protected":false},"author":1,"featured_media":358664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[99],"tags":[10959,13591,1146,296],"dealstore":[],"offerexpiration":[],"class_list":["post-358663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-find","tag-homes","tag-sale","tag-short"],"yoast_head":"\nA short sale is short on money, but very long on time. I\u2019ve seen it take as long as a year. You\u2019re going to be waiting a long time, and if you have your heart set on a property, you can be very disappointed.<\/q><\/p>\n
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![\"Jessica](\"https:\/\/media.homelight.com\/uploads\/agent\/picture\/1124478\/58812ce6-8214-48f8-9ee2-0c98edc207b5.jpeg?width=121\"\/)
![\"Jessica](\"https:\/\/media.homelight.com\/uploads\/agent\/picture\/1124478\/58812ce6-8214-48f8-9ee2-0c98edc207b5.jpeg?width=121\")
\n <\/div>\n
\n Real Estate Agent<\/span>\n <\/p>\n<\/p><\/div>\n
\n Close<\/span>
\n <\/a><\/p>\n\n <\/div>\n
\n Real Estate Agent at Coldwell Banker Realty Santa Cruz<\/span><\/p>\n\n
\n 22<\/strong>\n <\/li>\n
\n 491<\/strong>\n <\/li>\n
\n $1m<\/strong>\n <\/li>\n
\n 397<\/strong>\n <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/li>\n<\/ul><\/div>\n<\/blockquote><\/div>\n<\/div>\n<\/div>\n<\/section>\nWhat are some of the drawbacks to buying a short sale?<\/h2>\n
Where to find short sale homes<\/h2>\n
Connect with a skilled buyer\u2019s agent<\/h3>\n
Find brokerages that specialize in short sales<\/h3>\n
Search through the MLS<\/h3>\n
Work with an SFR\u00ae Certified Realtor<\/h3>\n