When you begin searching for that perfect new home for your family, you may notice that while most are sold conventionally, some are sold under a special designation – “short sale”. Though short sale homes can certainly be an excellent option, the process of purchasing them can often be a little different than that of a traditional home purchase. As such, if you are planning on tackling a short sale home purchase, it can help to have some useful information at hand.
What is a short sale home?
A short sale is similar to a foreclosure in that it generally occurs only when the homeowner is significantly behind on their mortgage payments. However, in a short sale, the lender agrees to accept a mortgage payoff amount that is less than the balance owed. This is done so that the homeowner can sell the property without being on the hook for thousands of dollars in additional mortgage payments.
Is buying a short sale home a good idea?
Much like any major decision in life, there are both good and bad sides to purchasing a short sale home. The upside is primarily financial – you will likely be able to purchase a short sale home at a significant discount when compared with a similar, conventional home. You might also find that the lender who is facilitating the sale will be willing to offer you some favorable interest rates in order to speed up the sale.
On the flip side, short sale homes are usually in need of some renovation. Since the old owners are usually in some degree of financial difficulty, they most likely did not keep up with the necessary home maintenance and repairs that the property requires. You should expect to have to put some elbow grease into getting the home into good shape again. Of course, it is also a good idea to get a full inspection of the property to make sure that there are no potential structural issues.
Who can help you with the purchase of a short sale home?
Since purchasing a short sale home is a little trickier than a regular home purchase, it is not advisable to go it alone. Instead, you will need to enlist the help of an experienced real estate agent to assist you. Be sure to ask your agent about their previous work on short sale home purchases. The more they know, the more they will be able to help you.
Though purchasing a short sale home can be something of a challenge, it can be a great way to purchase a new home in a great location at a steep discount. However, you should always be prepared to roll your sleeves up to get the place looking fresh again.
We can help with Short Sale purchases. Call us today (949) 844-8445