Making an Offer on a Short Sale

Should You Make an Offer for a Home with a Short Sale?

If you’re searching for a home in Encinitas, you might have heard about “short sales” as another way of purchasing a house. In case you’re unfamiliar with the concept, a short sale occurs when a homeowner sells their property for a price less than what they owe on their mortgage. While it sounds like a great opportunity to buy a home at a cheaper cost, it’s essential to acknowledge the risks associated with getting a short-sale home. Not only can it take a long time to acquire the property, but you also have to wait for a mortgage lender’s approval on the sale. Short sale sellers typically prefer people who make all-cash offers or large down payments, so consider the amount of money you’d have to put in to obtain your desired property.

However, getting a short-sale home often means you’ll get a house in a better condition than a foreclosure auction, and mortgage lenders generally pay closing costs. There are pros and cons to buying this type of home, but you can speak with a Real Estate Agent in Encinitas for more information. They may be able to find solutions based on your financial situation and guide you through this intricate process of buying a home.

How Can You Make an Offer on a Short-Sale House?

Are you considering making an offer on a short-sale home? Take a look at some strategies to consider that may help you get closer to getting your property: 

Get Pre-Approved

If you can’t make a cash offer, the next best way to show you’re a qualified buyer is to get pre-approved for a mortgage loan and provide proof of this to the seller’s lender. Try to make an offer with a larger down payment to show you’re serious about buying. Most earnest money deposits are $1,000, but putting down 2% to 3% of the listing price will give your offer a better chance of approval.

Another way to demonstrate that you’re qualified is to place your earnest money deposit into a trust account as soon as your offer is approved. 

Rethink Contingencies

Asking the seller to finance inspections or repairs means your offer will likely not be accepted. Remember, the seller may be trying to avoid foreclosure, and their lender will be avoiding taking too much of a loss. Since the seller’s mortgage lender needs to approve any buyer offers, they will probably take yours more seriously if you agree to pay closing costs that the seller would normally be responsible for. The low price you pay for a short sale also comes with repair costs, home warranty plans, special reports, and additional fees.

Confirm the Price

Always call the listing agent to see if offers have been made that are higher than the list price. And if the seller has already accepted an offer, you may just be wasting your time.

Work with a Realtor in Making an Offer on a Short Sale

After reading the different ways you can obtain a short-sale home, it’s time to decide if you want to move forward with that decision. Ensure you account for the possible timeframe from getting a short-sale home and the things you might face when making an offer. However, if a short sale sounds right for you, then you can contact Realtor Linda Moore for assistance throughout every step of the process. Just email or call her now to get in contact with her immediately.

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