Occasionally I will have a buyer searching for homes who discovers one online that is identified as a short sale. When this happens, I want to make sure that the buyers fully understand what a short sale is before they decide to make an offer on the home. Are you curious to know what makes a short sale different?
What is a short sale?
A short sale occurs when the owners of the home are financially distressed. The owners make an agreement with their bank who holds the home’s mortgage to place the home on the market for less than the amount due on the mortgage. All proceeds from the sale go to the lender.
Can I make an offer on a short sale?
Yes, you can make an offer on a home listed as a short sale, but before the home can go on the market as a short sale, the owners must work with the bank and get approval for the short sale. There is a lot of paperwork involved with this, so it can take several months to get the approval for the short sale. Once approved, any offers that potential buyers make are accepted or rejected by the bank. This, again, can lengthen the timeline for the purchase of a home since a bank can take longer to respond to an offer. The home is sold as-it, so buyers can not expect any repairs to be completed by the bank. A home inspection can be completed by the buyers for informational purposes only.
How long does it take to buy a home?
While a short sale may not be the ideal situation for a buyer who immediately needs a home, it can be appealing for buyers that have more flexibility in their timeline. There is not exact timeline for purchasing a home that is a short sale; a lot depends on how quickly the bank responds to offers and moves through the home selling process.
Whether you are a buyer or seller, it’s important to work with a real estate agent that has short sale experience to help you navigate the process. I have experience with short sales and would be happy to help answer any questions you may have about the process. Feel free to contact me, Sean Jones, at 540-360-5166.
