Buying a Short Sale
Buying a short sale is almost like buying any other piece of real estate.
Here are some things to note if you are considering buying a short sale property:
1) Expect a long wait. In a “traditional” sale (not a foreclosure or short sale), you make an offer, and the seller reviews it. Maybe you go back and forth on the price a couple of times, but an agreement to sell the home typically happens in a couple of days. Not-so-much in a short sale. You make an offer just as in a traditional sale, the owner of the home agrees to sell it, and now the offer gets sent to the bank. Remember, it’s the lender/bank that has to approve the sale price. And that can take WEEKS. Sometimes MONTHS. If you aren’t in a position to wait for months on an answer as to whether or not the bank will accept your offer, then you really shouldn’t play in the short sale sand box.
2) Don’t expect the seller to make any repairs to the home. In a traditional sale, repairs are negotiated between the buyer and seller. In a short sale, the owner will not make any money on the sale. Hence, they are going to be completely reluctant to spend money on repairs. Plus, the owners are typically in financial distress and simply have no money for repairs.
3) The banks don’t care about any personal situations. Selling a home is a very emotional experience – for real people. Banks are not real people. They have zero emotional investment in a home. All they care about is their bottom line. It means nothing to them that you’re a Veteran, that you are having a baby, that you’ve found your dream home. Nothing. They don’t care. You may make an offer, wait weeks for a response.
4) So why go through the hassle? Well short sales do offer an ever expanding opportunity to buy a home at a discount price and more often then not the homes are in better shape than some lender owned homes or foreclosed home. Speak with one of our Realtors to help you find out if buying a short sale is for you!
Yes indeed, someone can submit an offer after you, and have it accepted over yours. From the Arizona Association of Realtors Short Sale Addendum, lines 13 – 15: