Frieda Lencioni, Realtor for Century 21 M & M Real Estate Modesto, says, “The most important thing for a Buyer to consider before moving forward on a Short Sale is to make sure that your Buyers Agent is (very)experienced in this type of transaction”.
Short Sales for Buyers can be very challenging to say the least, if not frustrating. As a buyer in this type of transaction, your Realtor should prepare you ahead of time letting you know of the many potential problems and/or hurdles you may have to overcome. As the Buyer, you will be better prepared to survive this type of transaction.
It is important to interview potential agents prior to retaining their services as a Buyers Agent, and know that you will be working with this person 60-180 days…sometimes longer. Your agent should know and understand the Short Sale market. In fact, it is also a good idea to interview your Lender and make sure that they are knowledgeable in the Short Sale process.
1. Be prepared to have more than one offer out at a time.
2. Be prepared to wait up to 6 months especially if you are working with a large institution.
3. Be prepared to pay for the home inspection.
4. Be prepared to pay for your own Home Warranty.
5. Make sure that your Buyers Agent is calling the Listing Agent at least once a week regarding your offer(s).
6. Be prepared to pay for some of the Sellers Closing Costs or Escrow Fees
NOTE: Some Banks will not pay Closing costs or Escrow Fees and they throw this little wrench in right before the home is ready to close. In a Short Sale the sellers usually does not have the extra money, so if YOU as the buyer really want this home, you may have to come up with some extra cash right at the end. However in most cases you can buy a great deal on a short sales sometimes for as much as 50% to 60% off .
1. Do not fall in love with the first home you see.
2. Do not buy anything new during the time you are looking for a house. This will change your credit history.
3. Do not use your charge cards for any large purchases; if in doubt ask your Agent or your Lender?
4. Do not change jobs unless you talk with you talk to your Agent or Lender.
5. Do not lose patience with your Realtor if he/she is doing their job. Remember that buying a Short Sale can be a tedious process, and there may be many starts and stops during the process of closing the sale.
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