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5 Things buyers need to know before buying a short sale

Short Sale Home For Sale Real Estate Sign and House - Right Side.

Short Sale Home For Sale Real Estate Sign and House – Right Side.

A short sale happens when a buyer sells a property for less than the owner owes. Short sales occur when the owner cannot pay their mortgage and therefore the bank has requested the owner to sell the property to pay the mortgage. On a short sale if the buyer makes an offer and the seller accepts it, then the banks involved will also have to accept the value although it may not always cover their full investment. Here are a few tips to help with the process.

Brace yourself– Remember that there will be many people making offers, therefore hand in your offer and look for other houses. This way if your offer is rejected, you still have other options on hand.

Get busy waiting – Short sales can take a few months to get accepted or rejected. Avoid calling your agent and be patient.

Get busy – Get your assets together to purchase your property, because as soon as your offer is accepted, you will have a few weeks to make your payment.

Be ready to work – You should know that short sale houses are neglected as the owner will know that when he/she cannot make their payments, they will soon lose their house. Therefore, have some extra money for possible unexpected repairs.

Set your sights low – Look past the surface of how the property looks at the moment and consider what projects can be started to make your home your dream home.