If you are considering buying a short sale home in Long Beach, Lakewood or surrounding communities, here are 5 tips to help you successfully close the sale:
1. Short sales require lots of patience. If you have a tight timetable for moving, you may want to skip short sales. Make sure your agent knows who the lienholders are and what their typical turnaround time is so you can evaluate whether this is a transaction that will meet your time requirements.
2. Get yourself educated! Ask your Realtor to explain how the process works and what you can expect.
3. Understand you are dealing with uncertainty. Short sale purchases are never a sure thing. The current lienholder – the seller’s bank – may require the seller to bring in money they don’t have or aren’t willing to contribute to the sale – or they may counter on price or other terms.
4. Get a firm grasp of the property’s market value by reviewing comparable sales with your agent. Some listing agents price short sale homes well below value to generate multiple offers, but that doesn’t mean the bank will take something that low. One of the first things the bank will do is to order an appraisal or BPO (Broker Price Opinion) to determine the property value and make sure they are minimizing the loss.
5. Submit your offer with a pre-approval, proof of funds and FICO scores. The strength of your financial qualifications will help convince the seller and their bank that yours is a strong offer.
If you’re interested in finding out more about the short sale process – as a buyer or seller – please contact The Shannon Jones Team today at [email protected] We have tremendous success in closing short sales in Long Beach and surrounding communities and would love to help you.