Although short sale purchases can offer many advantages to buyers, many buyers fall into some common pitfalls that lead to the rejection of their offer or the collapse of the entire deal. Avoiding these pitfalls can help homebuyers ensure they get the best possible outcome when trying to purchase a shortsale. The following are seven of the top pitfalls that often ensnare buyers and some helpful advice on how to avoid them.
Avoid Too Low An Offer
Making an offer that is too low is one of the most common pitfalls that buyers fall into when working to purchase a short sale property. This problem often leads to the rejection of the buyer’s proposal or it may even make the entire sale fall through if the lender gives a flat refusal to sell instead of a counteroffer. Buyers often focus so much on getting the lowest real estate prices possible that they fail to remember that their offer needs to be attractive to the lender. After all, the lender wants to receive an offer that makes the shortsale more attractive than allowing the home to go through foreclosure.
Coming up with the right offer on the home will include looking at several factors. The price offered on the home should be based upon comparable sales in the area and the condition of the home. While buyers should expect to save money on their purchase when compared to traditional real estate properties, they should not expect lowball offers to be approved by lenders.