Ready to make a deal on a short sale?

Are short sales good deals?

The short answer is "sometimes". Most people hear the term "short sale" and automatically think of a seller that is in default and must sell their house quickly to prevent further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have depreciated. In cases such as these the "bargain" price may in fact be closer to actual market values, not below.

How do I buy a short sale?

• Always do your homework before making any offers. Using a qualified real estate professional from Kiva Realty to assist you with researching a property will help you make knowledgeable decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Locating this info can help you determine how much to offer.

• Use an agent with short sale experience. The real estate agents at Kiva Realty can help expedite the transaction and make certain you're protected. Don't allow inexperience to impede the closing process. Put our experience and knowledge to work in your favor.

• Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Be aware that a majority of short sales will not close in 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the sale terms. In most cases your offer will be presented to a committee for approval, which will add time - sometimes even 2 to 3 months.
• Home protection warranties, buyer credits and allowances, and closing cost concessions are generally not negotiable when buying a short sale. The lender will sell the property just the way it is which means the lender will not be paying for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Kiva Realty, when we write an offer, we're looking out for your interests first and will always suggest that you make your offer contingent upon the results of the inspections.