September 2011
7 Tips to Finding Your New Home at Discount
Short Sales Can Be Your Friend...
They Don't Have to be Complicated, Scary or Confusing
1. Search for Short Sale Properties
Most short sales can be found on local websites and MLS feeds. Look for words that identify a property as a short sale: Notice of Default, Subject to Bank Approval, Pre-Foreclosure, Headed for Auction.
2. Select a Real Estate Professional
Professional with short sale experience will help you navigate this sometimes tricky process. A trained ally on your side can make your experience a success.
3. Investigate the Property’s Mortgages & Liens
Have your Real Estate Agent uncover how much the mortgage is worth. Find out what the current owners paid for the house and when. Ask how many liens are on the property and who the primary lien holder is. A short sale with only 1 lien is going to typically be quicker and easier than a house that has 2 mortgages.
4. Have a Home Inspection
Short Sales are typically sold "as-is," often with no contingencies allowed. A short sale is no bargain if you discover after the sale, that there are major, costly flaws with the home.
5. Be Patient & Realistic
The buying process is often far more complex- and it takes longer than a traditional sale. So be prepared to wait 30-60 days for a response on your offer. Know that if you submit an extremely low offer, the bank might counter you back at a higher amount after they get an appraisal done on the home.
6. Get Pre-Approved
A bank will not even consider your offer unless they know you are qualified to purchase the property and can afford the payments. You also need to know what the monthly obligations you are getting yourself into.
7. Research Comparable Home Sales
Find out what other similar homes in the area have sold for in the past 6 months. Become educated in the market data. This will allow you to spot good deals in the area you are looking.