Step #3 – Research the Property Carefully
Once buyers have viewed the property and they are interested in pursuing the property further, it is then important to research the property carefully. Spending some time researching the property can save time later and keep potential buyers from experiencing buyer’s remorse after they have purchased the home.
When doing research on the property, some important questions to ask include the following:
- What is the worth of the property?
- Is there an opportunity to profit? (Both homeowners and investors will want to consider if they can profit from the deal before making the final decision).
- What is the neighborhood like?
- What are local properties worth?
It is also important to investigate all the liens and mortgages on the property being considered. The seller or the seller’s agent should be able to provide information on the property liens. It is also a good idea to find out which lender happens to be the primary lien holder.
Step #4 – Decide How to Finance the Purchase
Deciding how to finance the purchase of a short sale property is another important step for buyers. Before going further in the process, you must know how you plan to pay for the piece of real estate for sale. If you present a low credit risk, the current lender holding the primary lien on the property may be willing to finance the purchase. When you present the lender with the short sale paperwork later in the process, they will have much of your information, which may allow them to expedite a loan application approval.
Figuring out the financing is important because buyers need to have the ability to move quickly once involved in the buying process. Once buyers get to the agreement stage of the process and everything is negotiated and worked out, lenders often require closing to occur quickly. Buyers do not want to wait until the lender sets a close date to begin shopping for a mortgage. Getting the financing taken care of early will help the process move along faster and smoothly.