The Best Tips for Purchasing Short Sales1 year ago
Real estate short sales are very well known by now. Some view them as negative and a situation in which they would not want to get involved. Other investors see it as a great opportunity and have had a lot of success when purchasing short sale homes. Either way it is viewed, they exist and need to be sold just like any other home. This article will give some of the best tips regarding what you are looking to purchase with a short sale.
One way to look at real estate short sales is a home that can be purchased for pennies on the dollar. Many times these homes are listed for 60% less than the original purchase price. A home that sold for $300,000 can likely be purchase for less than $200,000 through a short sale. If an investor has the time to hang onto this home until the market comes back, then the equity earned will be worth it. A home in this state is owed more than what it is worth and may not have any equity. A short sale should not be taken lightly and should be approached by experienced investors and agents.
An investor approaching real estate short sales should go at it in many ways. It is a good idea to look at many homes and compare them. Work with an experienced real estate agent and find out the length of default on the home. It is also crucial to find out if the house has any liens or judgments against it. An investor, along with an agent, should also know what to offer so that the purchase price is reasonable. There is also a lot of patience involved in real estate short sales that may be frustrating to the inexperienced.
Knowledge is the best power to have when purchasing a short sale. It is important to know that you have to close within 30 days, and once you start a deal it has to be completed. There is no backing out of the deal or changing things. The biggest let down may be that even if the home owner accepts your offer, it does not mean that the bank will; therefore, you should be prepared to negotiate a few times or simply to pay what the bank wants. The bank is already taking a loss; therefore, it wants every dollar it can get for it. Most of the time real estate short sales are sold as is and banks will not lower the price.
Real estate short sales can be great investments. They definitely should be purchased by experienced investors who should work with experienced real estate agents. Educating yourself about the ins and outs of the short sale process will make purchasing one not so shocking, and when a situation arises you will know how to handle it. If you are looking to invest in and purchase a short sale, then use the recommend tips to make your experience a better one.