Even though the economy is getting back on track, there are still scores of homes that are currently in foreclosure or close to foreclosure. Of course, this is a bad thing for the people who can’t afford their mortgage, but it can present a great opportunity for people looking to get a deal on a new home. When it comes to buying real estate, making an offer on a short sale can save you time and money. What is a short sale? Basically, when a person has a lien on their property and can’t pay the mortgage, they may be forced to sell the home for less than what they owe – just to make it even with their bank. Here are five factors to consider before making an offer on a short sale.
- Has the home been inspected? One of the most important factors to consider when purchasing a short sale property is whether or not there has been a housing inspection. There may be some things you can’t see with your naked eye, like foundational issues. Some short sale homes have been empty for many years and may have major issues. Before you make an offer, you want to have the home inspected.
- Have you researched the real estate agent? On top of getting the home inspected, you also want to research the real estate agent that is selling the home. If you research “David Painter Properties – Keller Williams” – you will see that Keller Williams has numerous positive reviews. However, you may search a real estate agent and receive different results – negative results. You want to do your research simply to protect yourself.
- Is there anything wrong with the property? You don’t need a housing inspector to tell you that there is mold damage or if there are visible issues with the plumbing. Considering some of these superficial issues will be critical before you make an offer. If there are visible issues and you are willing to remodel, you may be able to get a great deal on the property. If you are not willing to take on a major remodel, you may want to move on.
- Are there any inherent environmental risks? Some homes are in the cross hairs of tornados, earthquakes and even floods. Ideally, you want to find out what some of these environmental risks are, because they could mean the difference between paying a little bit of money and a lot of money on insurance. The last thing you want is to be married to expensive insurance premiums.
- How long will the closing process take? When you close on a short sale home, the process could take a little longer than it would if you didn’t purchase a short sale home. This is an important factor to consider, especially if you are in the market to flip the property. The last thing you want is to be caught up in legal papers. In the end, patience is key when you purchase a short sale home.