There are bargins to be had on purchasing short sales, but they may not be as much as many buyers perceive. Making an offer on a short sale requires patience by the buyer, but you can be rewarded with a discount. It can take anywhere from 30-60 days to be notified that your purchase has been approved. Here are some items to consider that the bank may come back with:
- Property will be sold as-is
- In a condo, the buyer may have to pay for their own HOA documents
- In a home they may not pay for any termite work that is required of Section 1
- Currently the banks are giving up to a 10% discount from the BPO (Brokers Price Opinion) of the property, which is used to determine market value.
It is important to understand that when making an offer on a property that will be a short sale to have an understanding of where your offer will have some success. Making an offer that is 50% of the list value of a property probably won't have success. Have your realtor help you understand what the market value is and offering a discount on that can help you to succeed!
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