Buying a Short Sale

Buying a Short Sale

There are many programs today that promise riches though buying short sale properties. While it is often possible
to profit from the buying and selling of short sales, it is not as easy as these programs claim. This is because short
sale properties are priced according to the current market value of the home. It is not always easy to get homes at deep
discounts as is often possible when buying properties at auction. However, if the market is expected to improve and you can make
inexpensive improvements on the home, you may still be able to turn a profit.

More About Buying a Short Sale

Experience Pays

The services of a Real Estate agent who has experience dealing with short sales are an indispensable tool that you should take
advantage of. Trey Teichelman, A professional agent will know all the details of successfully buying a short sale property. You will receive
valuable advice to protect your interests during negotiations of your purchase.

A professional Real Estate agent can also find information that you will need before making an offer on the property that interests
you.

Buying a Short Sale – Information You Need

• Who currently is in title of the property
• How much is owed on the property
• If the property is currently in foreclosure

Knowing these things will give you a clearer idea of how much you should offer the seller. However, even if the seller accepts
your offer, the lender may still refuse it. This is another area where having professional assistance will pay off for you.

Lender Requirements

It can take much longer than anticipated for the lender to accept, reject or counter your offer. To save time it is a good idea
to provide the lender with as much information as possible the first time. This will assure that the lender has all the information
that he needs to consider your offer.

Buying a Short Sale – Lender Requirements

Some things to include are:

• A copy of the purchase offer
• A copy of your earnest money deposit
• Your loan pre-approval information
• A list of comparable sales in the area, obtained from your Real Estate agent

Realize that the lender is unlikely to pay for things that a seller typically pays for. For example, termite inspections will need to be paid for by you, the buyer.
In addition, they may require that you increase your earnest money deposit. Commissions also will typically be negotiated by the lender because they are losing money in a
short sale transaction.

Don’t think you will save money by skipping inspections! Inspections are imperative and will save you many headaches down the road. This is one place where being
thrifty is not a good idea. Make your offer contingent on your approval of the results of the inspections as well as on acceptance of your offer by the lender.

Buying a home through a short sale can be a smart economic move. Follow the advice of your Real Estate agent who is trained to
handle these transactions and has enough experience to prevent possible problems. This will assure that your short sale purchase is the best possible experience for you.

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