Usually, it has been seen that buyers pursue a
short sale to source a good deal. They believe that buying an opportunity laden
with a good opportunity comes in the form of a short sale.
It is therefore important to evaluate and be
precise while selecting a house for a short sale. If it happens that you come
across a price that seems too low for a house listed in your near-about, be
sure to ask your agent to in turn check with the listing agent to find out
whether the home is a short sale.
From a traditional standpoint, it has been seen
that several homebuyers wait for a period of 6 weeks to 6 months so as to close
on a short sale. Sometimes, the waiting period can be longer.
But there are a few errors that buyers are more
likely to make before a short sale purchase:
1. Ignoring A Property’s Problems
Leaving a property and moving out can never be a
smooth process. There’s no rocket science behind this seemingly harmless move.
There exists some stickiness; a feeling marking a deep connection with one’s
property. Being asked to move, therefore, isn’t the most emotionally rewarding
In this light, people at times take out their
anger out on a home. In this scenario, they are more likely to completely
ignore structural and safety issues that must be adhered to at all times.
Emptying foreclosure properties may therefore
suffer from a wide string of neglect and issues including leaks, pilferage,
termites and filth.
2. Skipping The Pertinent Process Of Home
Popular home-inspection franchisers in the
United States advocate to emphasise on conducting elaborate home inspection
There may exist a wide bouquet of problems that
come to surface only upon detection conducted by specialist inspectors.
Leakages from roof, disintegrated floor-mats or problems with flooring, broken
tiles and issues like that commonly plague short-sale houses.
The key during this stage is to ask an inspector
for repair estimates. Should the problems be expensive, such as that of
termites or other structural damages, one should make it a point to have only a
specialised inspector- one rated highly- attend to the said problems.
Usually the tendency of buyers when it comes to
short-sale properties is to underestimate renovation costs. This is a common
malaise and must be addressed.
3. Ignoring Critical Legal And Insurance
It is important to make note of what a typical
disclosure statement carries; to examine whether there is information
pertaining to any kind of unpermitted renovation or unpermitted construction or
extension in a property.
Now since bank-owned properties don’t get into
meddling with agents in this regard, it is absolutely critical for buyers to
conduct some extra research in this regard.
4. Battling Against Too Little Time
When it comes to foreclosure or short sale,
homebuyers need to be aware that sales in this regard do not close that
quickly. Situations are, however, different when it comes to sales of
Care must be given to ensure that the short
seller’s lender must state an approval of either foreclosure terms or a short
sale price that is less than what the seller owes.
5. A Downward Spiral Fall For A Bad Home
It is highly advised that when considering to
buy a short sale property, one must think from the perspective of an investor.
It is important to factor in scenarios like the house’ condition, inspection,
price and property value from a dispassionate lens.
Before one opts for purchase, it is important to
ask oneself the following:
Suppose the house’ value drops by a further 20%,
would you feel satisfied with the purchase?
How much money are you willing to pump in as to
make the property habitable? (liveable)
Common problems inflict short sale homebuyers,
who, it is believed don’t pay a patient ear despite being reminded by
inspectors on grave concerns associated with a property: broken sewer lines,
rats living in basement or collapsing or damaged roof.
In the end, nothing drives home a good short
sale purchase than listening to a trusted inspector’s advice.