With short sales, also known as Pre-foreclousres, there is opportunity and sometimes some frustration. As this type of purchase is still relatively new there are some growing pains for both buyers and real estate professionals. Here are 5 tips to help you get through a short sale purchase.
- Number of Offers on the Property - If there are multiple offers on the property, is the agent going to have his sellers sign off on 1 of them to start working on that particular offer with the bank? This is key, because if they submit all of the offers to the bank, you have no security in knowing if you are going to have the opportunity to get the property.
- Experience of Agent - No, I don't mean the number of years they have been in business or their age! If they have not completed numerous (hopefully more than a 1/2 doezen at this point) short sales on both the purchase or the listing side, be aware that it will be a bumpy ride.
- Lien Holders - Is there just 1 bank that has a note on the property or are there 2? This can make the most dramatic difference in how long it takes to get your purchase approved from the bank. The best odds are when there is just 1 bank.
- Closing Costs - Realize that most banks are not allowing closing cost back to the buyer. When they are allowing closing costs, it is in general about 1% of the purchase price of the property, although this is largely dependent on what the offer price is on the property.
- Offer Price - At this point, you aren't going to get a home for 50 cents on the dollar. Successful buyers are getting short sales approved at 90% of the BPO amount. The BPO (Brokers Price Opinion) is what a real estat broker has evaluated the fair market value of the property to be.
Keep these tips in mind when purchasing a short sale. Short sales can be a great opportunity to save money on the home that you want.
0 comments:
Post a Comment