How does buying a short sale impact a home buyer?
If you are a buyer buying a home that is subject to a short sale contingency, the impact will vary depending on yours and the homes situation. Each case will be different and you should consult with an attorney and use the services of a real estate professional who is skilled in handling short sales.
Positive impact
One of the positive impacts of buying a short sale is that often times the home will be competitively priced. Short sale sellers are not typically pricing their homes unrealistically. When the seller's lender approves the short sale price, the buyers will be satisfied in most cases that they have paid a fair market price for the home.
Negative Impact
One negative impact of buying a short sale is the amount of time it takes to complete the process. With some short sale transactions the process is never completed causing the buyer to lose valuable time. Once again each short sale situation can be different. Lenders may not respond to a seller's request for approval of a contract for several months or could decline approval after months of waiting.
Short sale inventory is going to make up a significant portion of the Central Florida real estate market for some time to come. If you are in the market to purchase a home and want to know how it will impact you specifically, contact me for a professional consultation.
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1 comment:
Not too long ago banks were somewhat eager to lend out their money in a good market and sometimes over mortgage the home. What that means is that the loan is greater than the value of the property. Even though it may not be legal banks may tell the appraiser of the home to try their best to make it the amount that the owner wants to borrow. This can be a bad situation for everyone.
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