Short Sale Roller Coaster Ride
I Love Everything About Real Estate!
Have I shared with you how much I love real estate? I truly do love being a real estate agent and working as a team along with my husband and sister!!! But, I must warn you, real estate is not for the faint of heart. Every transaction is unique and each brings its own set of challenges. Most recently, our team has been working on a number of short sale transactions. Short sales can be a relatively pleasant experience or a nightmare depending on how well all parties to the transaction have been prepared. No matter what, a short sale is not boring – so get yourself strapped in and hang on for the ride!
Short Sales – Mr Toad’s Wild Ride
We are currently working several short sale transactions on both sides of the fence – with sellers that have listed their homes with us to sell as short sales and with buyers that are purchasing short sale homes. The reason that short sales are probably the wildest ride of all transactions is because there’s so much time between when the house goes under contract and when you actually close. With so much time, typically between 3 to 6 months or more, there’s so much that can happen in that span of time that can queer the deal.
Tips When Buying or Selling a Short Sale Property
- If you are a seller, use a Short Sale specialist/attorney/title company to negotiate the short sale for you.
- Buyers, remember that this is probably an emotionally charged situation for the seller. In most cases, they are selling out of necessity and not out of choice and it’s a very difficult time for them as they are facing either losing their home to foreclosure or selling it as a short sale all the while trying to figure out where they are going to be able to move that is affordable.
- Buyers, try to make sure the seller is committed to selling and will cooperate during the whole process. You want to make sure that the sellers are really motivated to sell and are not simply stalling the foreclosure process.
- Sellers need to know that they will be asked to provide financials all along the way and that it will definitely seem redundant, but the different seller lenders require different forms. Just when you think you’ve given them everything and given it twice, they will ask for it again!
- Buyers, if you are committed to hanging in there for the duration, you’ll want to go ahead and get your home inspection done as soon as you’ve got an executed contract. If you wait until the bank approves the short sale, it will delay the process. Plus, wouldn’t it be better to know early on in the game, instead of waiting 3 or more months, to find out there is something wrong with the house that would prevent you from moving forward with the purchase?
- Buyers, make sure you have a cushion of time. If you’re currently renting and your lease is up for renewal in the next 3 months, a short sale is probably not a good option for you as the short sale process can take anywhere from 3 to 6 months or more.
- Buyers, find out from your agent if there is just one mortgage on the property or if there are multiple liens. If the sellers are only having to negotiate with one lender, then it will probably be a smoother process than if they have to negotiate with a 2nd and 3rd mortgage lender.
Patience is a Virtue
When involved with a short sale transaction as either a seller or a buyer, just know that there will be ups and downs along the way and it’s just part of the short sale roller coaster ride. If you can hang in there until the ride ends, your reward as a buyer is that you’ve just purchased a home at a better than average price. As a seller, you’ve just avoided foreclosure and can now move on (sorry about the pun) with your life!
As Realtors®, we get a lot of satisfaction from matching buyers up with homes and sellers up with buyers and if you are considering buying or selling (even a short sale), we hope you’ll consider using the Larsons for your next real estate transaction. You can call us at 941-882-0322 or contact us by email here.
Tell Us About Your Short Sale Experience
If you’ve been a party to a short sale and road on the short sale roller coaster, we’d love to hear your experience and any tips you can offer sellers and buyers of short sales. Please keep it generic and do not include specific addresses or names of people involved. Thank you!