Fountain Hills home buyers think they can get a real deal by purchasing a short sale. Well maybe you can but is it worth all the hassle? Know what is involved before you jump into the fire. First, hire an experienced short sale agent who knows the ins and outs of short sales. A buyer’s agent will do some research on the home and find out information about the seller’sshort sale. These answers can determine if you want to move forward with presenting an offer on the home.
Some of the things your agent might do are:
• Is the Short Sale Listing Agent Experienced?
If the short sale listing agent has little experience working with short sales, your chances of an offer acceptance may be slim. Is the agent negotiating the short sale with the lender or is an attorney? Having an attorney or professional short sale negoiater working on behalf of the seller is a definite plus !
• How Many Short Sale Offers Are Submitted?
Sometimes if the price seems to good to be true multiple offers will be presented to the seller. Once one offer is accepted by the seller it is presented to the bank. Make sure that is the one and only offer being sent to the bank.
• How Many Banks are involved?
If there are two different banks involved this could cause major delays. One loan, one bank make the chances of closing on the property more likely. Knowing which bank is involved also will be an indicator of how fast it could possible take from start to finish.
• Has The Short Sale Package Been Submitted?
Bank negotiators will not process a file if the sellers’ short sale package is incomplete. Find out how far through the process they are and if a BPO (Brokers Price Opinion) has been completed.
• How Long Do Short Sales Take?
You can not predict what the bank is going to do or how long it will take them. It took 4 months to get a Scottsdale short sale closed from the date the offer was accepted. That lender stalled on a request for roof replacement and postponed the trustees sale 3 times. We had several estimated to back our claim, but we waited for months. It wasn’t until my buyer cancelled the contract after one last request to get a response. If it wasn’t for the persistance of the short sale negoitator who was working for the sellers agent, I truly believe this deal would have fallen apart. If everyone the seller, seller’s agent, the buyer, the buyer’s agent, the bank and who ever is doing the negotiating, doesn’t do their part in the transaction and be totally committed, it may not get closed.
The short sale process, from submission to short sale approval, can be anywhere from 30 days to 120 days or even longer. Be ready for the unexpected, because you just can’t always avoid problems on a short sale and the banks can be unpredictable. I always tell my buyers that they must really LOVE the home and be willing to wait it out for at least 90 days, otherwise don’t bother.