Purchasing a short sale property offers both pros and cons for buyers, but in the end, many buyers find that the significant discount on the property price is enough of a reason to move forward with this type of a purchase. The shortsale process can be a bit tricky to negotiate for homebuyers.
Many steps must be followed to get through the process to finally own the home. Homebuyers considering a short sale purchase should be aware of the essential steps to navigating through this process successfully. Although every short sale transaction can vary, the following are the common steps to making a purchase in the order they generally occur.
Step #1 – Finding Shortsale Properties
Once a buyer has decided to consider a short sale home, the first step in the process is to begin finding shortsale properties. Homebuyers can begin identifying potential options by searching through courthouse listings, hiring a real estate agent experienced in dealing with short sales or by searching through an online database like that offered by RealtyStore.com. Listings can be found on MLS feeds and local real estate websites as well in some cases.
Of course, in some cases, these real estate homes are not actually listed with the words “short sale” attached to them. This means that buyers must read listings very carefully. Agents may slip certain words into listings that identify the property as a shortsale.
Some of the words to look for in listings include the following:
- Notice of Default
- Subject to bank approval
- Headed for auction
- Bank needs time to respond
- Preapproved by bank
Step #2 – View the Property in Person
After buyers identify short sale properties of interest, the next step is to view the property in person. Buyers should never begin putting in offers on a piece of real estate before taking time to view the home. When viewing the property, buyers should focus on the condition of the property while also coming up with a rough estimate of how much money it may cost to renovate or repair the property.
Expect shortsale properties to need some work. However, most buyers do not want to get involved with a property that requires too much work or too much money to restore the property. However, many “normal” buyers will not even consider properties that need work, which is good for buyers interested in purchasing these properties.