The more short sales I work on lately, the more I want to do. That is because the process is getting shorter and the wait time for approval is finally within a reasonable time frame. As a Buyer, it is a scary thought to go blindly into a real estate transaction not knowing how long it will take not to mention if the deal will get approved at all. The deal looks so enticing and one can only wonder if it is possible to swoop in and steal a home for little to nothing in a down economy.
I just did that.
Now I am educating my Buyers on the benefits of pursuing a short sale. Is it a risk? Of course it is. What is a bigger risk? Not making the best of low home prices, that's what. The thing to keep in mind is when purchasing distressed properties their are some guidlines you must follow.
1. The parties acknowledge and agree that the Subject Property is being sold in an "as is" condition.
2. The parties acknowledge and agree that the Subject Property must be sold through an Arms Length Transaction.
Etc.. Etc… Etc…. Enough to make your head spin. LOL. I live by a few of my own rules. Common Sense. For instance, I would not recommend that my Buyers make an offer on an older home unless they are willing to do the inspection up front. Their is nothing worse than waiting 3-4 months to get short sale approval only to find that inspection found major structural problems.
Not only do you walk away unhappy without a home. You just took yourself off the market, and somebody else snatched up the better home in your favorite neighborhood.
My point is with the right mindset and a proffesional Realtor in your pocket you have the upper hand with a solid foundation and an understanding of how the process works. I am currently under contract on a Short Sale representing my Buyers. Let me explain the pros and cons to you. I think that you will see that their are some risks worth taking in life. When you can buy a home below building cost it is hard to argue with that kind of logic.
Now let us all do a little snow dance! Let it snow, Let it snow Let it snow!!!
Have a wonderful Thanksgiving!