A short sale property can be an incredible bargain. Most short sale properties sit on the market because buyers fear a long wait to get a yes or no answer from a bank. This doesn't have to be the case.
Usually, if a Realtor® is savvy with listing short sales, they already know what to ask the seller in regards to bank needed info and will immediately do a BPO on your house. This is an analysis of the market around you, what's sold, what's presently on the market, this is the way the bank will value your home. A bank is looking for Fair Market Value. There are great values in short sales. Here is a list of things you should consider as a buyer before making an offer on one.
 
     1. Hire a Buyer's agent to work with you, they will do comps for the area, if the house is a great deal the Buyers agent will tell you.
     2. Short Sales usually sit on the market for a while for one simple reason, people are afraid of them...(they shouldn't be). When a short sale sits on the market, the listing agent lowers the price, here is your great deal.
     3. If the house has been on the market for a while and the price has dropped, you must realize one thing...DON'T FEEL LIKE YOU MUST UNDERBID THE HOUSE. THIS IS EXACTLY WHERE THE TIME IT TAKES TO APPROVE A SHORT SALE BEGINS. If a home is listed for $350,000 and all the other homes are listed at $400,000 and the condition of the home you are bidding on is good, well then, you just got a good deal at $350,000! Going lower will damage your chance of getting the house.
     4. When a Realtor Lists a short sale and a very low offer comes in, that Realtor must think about their client's best interest. If the listing agent takes a low offer on that house, they can't send an offer into a bank that may be better if the home is already under contract with another offer... Therefore, the seller is in jeopardy of going into foreclosure because of a very low offer, the buyer is in jeopardy of waiting a long time to hear a big "NO" from the bank.
     5. Bid accordingly, if your Realtor® tells you that you are getting a good deal and you trust them, make a near full price or full price offer. You may be surprised.
The last short sale I did was approved in 3 weeks...The negotiator at Wells Fargo noticed that the BPO came in at $179,900 and we got an offer of $180,000. Everyone was happy and my client got all loans released from their credit.
I educate my BUYERS and SELLERS about short sales. My clients know what to expect and I inform them of progress as I always stay in touch with the Realtor on the other side of the deal.
So, when you see a short sale, don't run but see an opportunity to help someone get out of trouble and get a very good deal!
Dave Sulvetta REALTOR-Associate
Cell 856 889-8163
Century 21 Hearst
Camden County NJ Realtor, Camden County Real Estate, Gloucester County Realtor, Gloucester County Real Estate, Burlington County Real Estate
http://www.davesulvetta.com/
http://www.camdencountyrealestatenews.com/
email; dave@davesulvetta.com
Know YOUR Market! Get Market Snapshot It's 100% Free Click Here!