Experienced Real Estate Agents Help Buyers Navigate the Short Sale Property Maze

Due to the current economic climate, short sale properties are plentiful. Many home buyers are viewing this situation as an opportunity to get a great deal. If you are a buyer looking to cash in on this market, utilizing a real estate agent accustomed to working with banks on short sale purchases can be much to your advantage.

Property that is being sold for less than what the property owner owes the lender is termed as a “short sale.” While these properties will be found on MLS (Multiple Listing Services) because the sale is being managed by a real estate office, the lender is in control of this transaction. The bank will decide on the sales price and either accept or reject offers received from prospective buyers.

Buyers who are under the impression that they can pick up “steals” by purchasing either foreclosed or short sale properties may be unpleasantly surprised. Banks don’t take huge losses if those losses can be avoided. If a property is in good condition, and in a good neighborhood, it is reasonable to expect that it will be priced in line with other properties in the area.

You should be aware that there are lenders out there that will deliberately price a home below market value in order to provoke a “bidding war” on a piece of property that is especially desirable or in a particularly good location.

This is not meant to suggest that there are NO great deals to be found, but rather that you may need the assistance of an expert real estate broker to help you determine which of the properties that have attracted your interest are the great buys.

From the buyer’s point of view, negotiating with a bank can be a very long and frustrating process. Patience is a major asset when you are in this market. While your offer could possibly be accepted right away, you should be prepared to wait weeks, or sometimes even months, to get your offer accepted and your purchase closed. Lenders hold a power position in this process, so banks often choose to wait for multiple offers before accepting one.

Your real estate agent becomes your best ally during the negotiation process with the bank. A thorough understanding and familiarity with bank required paperwork in order to get your offer moving through the process is of course something you should expect. However, your agent offers even more value in being able to find out if your offer is competing against multiple offers, even while not knowing how your offer stacks up against the competition. Established relationships with bank personnel can never hurt in short sale offers.

You will likely find properties that are not in the best condition nor the best location. Lenders may be willing to loosen their lending restrictions in order to attract offers for these houses. However, for most properties, the majority of lenders will follow conventional guidelines to finance a purchase, even a purchase of a short sale property.

Most lenders will ask that a buyer submit a loan application to the lender directly to ensure that the prospective buyer qualifies for the purchase. However, lenders cannot require you to finance the house through their bank. Be wary of paying upfront fees if your intention is to shop for financing options.

As legal questions can and will arise during a short sale property transaction, real estate professionals will typically advise you to direct legal questions to attorneys and tax questions to certified public accountants.

Pfeif and Associates is an experienced real estate agency specializing in short sales, foreclosures and bank owned REO properties in Fresno, CA and the surrounding area. With a reputation for client satisfaction, they are affiliated with Guarantee Real Estate, one of the top producing real estate companies in Central California. Powered by SEO 2.0 Services