Tips on Navigating a Short Sale for Buyers
Are you a buyer considering purchasing your next home through a short sale? Consider our 5 helpful tips for buyers navigating a short sale.
- Get an inspection. Even though the property in a short sale is sold “as-is” it is important to get an inspection before going to the closing table. This will help you determine how much work you can expect to put into the home, as well as its real value. In some cases, proving that the home is in much worse condition than it seems, can persuade the lender to accept a lower price.
- Make a realistic offer. It is important to do your homework before putting in an offer. Though buyers can expect to get a deal when purchasing a home through a short sale, they will still need to be willing to make a reasonable offer. If the offer comes in too low, it is likely the lender will move on to another buyer.
- Provide a large down payment. Lenders are looking to liquidate short sale properties as soon as possible to make back their money invested. By offering more cash up front in the form of a down payment, buyers are more likely to get their offer accepted.
- Offer to pay for the seller’s closing costs. Though it is typical for the lender to pay commission and other seller fees, by offering to pay these costs the buyer can gain a competitive advantage to others also placing an offer.
- Hire a real estate professional. Short sales are a more complex process than that of a typical home sale. Hiring a knowledgeable real estate professional with experience in such complicated transactions can give buyers a leg-up and help them better navigate the process.
For more helpful tips on how to navigate a short sale, contact a VanDyk Loan Originator today!