What is a short sale in real estate?
Tips for investing in short sales
Work with a Short Selling Specialist
If your goal is to focus on short-sold properties, unless you have your own real estate permit, you will want to work with a Real estate agent. Simply put, the most reliable way to find a short sale ad is to go through the MLS, which only real estate professionals can access.
However, in this case, you don’t just want to work with just any real estate broker. Instead, you’ll want to focus on finding a short sale specialist. Short sales tend to be more complicated than your traditional real estate transaction, so it’s a good idea to have someone in your corner familiar with the process.
Read the short sale package carefully
Each short sale will come with an information packet, known as a “short sale pack”. This package is put together by the mortgage lender and describes all the important fine print of the transaction. With that in mind, read this document very carefully. By signing it and submitting an offer on the short sale house, you are essentially agreeing to all of the terms therein.
Budget for additional costs
When buying a short sale, it is important to allow for additional costs beyond the purchase price. Although the terms of each short sale are different, it is not uncommon for the lender to require the potential buyer to agree to pay the shareholder’s share. closing costs.
In addition, you may need the budget for home repairs. In this case, if a homeowner cannot meet their mortgage payments, they are unlikely to have the money for maintenance and routine maintenance. As a result, homes sold short are often sold in poor condition.
The bottom line
Buying a short property can be a great investment strategy. However, it is also the one where you absolutely must do your due diligence. Like a foreclosure sale, purchasing one of these homes could mean paying additional fees and facing the prospect of title issues. To this end, be sure to do your research before submitting any offers. If in doubt, consult a real estate agent who has experience in short sales in your area.