So You Want To Buy A Short Sale?
Nobody can resist a good deal, and short sales are usually priced lower than other homes. Why not take advantage of that? If you are thinking a short sale would be perfect for you, here are seven things you should know about short sales in Delaware.
Short Sale price is not pre-approved by the Bank
Most short sale listings are not pre-approved by the bank. That means the first step after getting a seller to sign, is to get all the information to the bank for their approval.
Don't be Dead Set on a short sale
There are plenty of other great deals out there and if you are only considering a short sale, you may miss out on an even better deal.
Don't Lowball Your Offer
In most cases, the home has been listed at a good price. If you go too low, you run the risk of the bank not approving your offer. They are already going to lose money on the deal, but they will have the home appraised and aren't even going to consider too low of an offer.
Other People Have Asked:
It is not uncommon for there to be more than one lien on the property. The more liens on the property, the more banks that will have to approve it. You may get your offer approved by the seller and the first bank only to have a second bank refuse to accept it.
Communication with a Bank is usually limited
In many cases, your short sale offer will be assigned to a negotiator. They are usually quite busy and it will be very difficult to even get updates on the status of the offer. It is not usually your agent or the listing agent who is the cause of this. Trust me, they want answers as much as you do!
Banks Don't usually negotiate the Settlement Date
Usually, when the bank counters your offer, the settlement date is set. The banks are usually pretty firm on this, so plan your schedule to accommodate this fact.
The Bank is King
The bank will decide when and at what price the property will sell. They hold all the power in this deal. Usually, this is the one time when the seller isn't as concerned with the price. Your offer has to be accepted by the bank. In some cases, you will only wait a few weeks longer. In other cases, it will be months before you have an answer. You may wait for those months and still not be approved. Be prepared to have your patience tested and perhaps rewarded!
If you are thinking about purchasing a Delaware short sale or listing your home as a Short Sale, please give me a call and we can talk about the options available to you. I can be reached at (302)733-7020.