Should I buy a Dallas Short Sale?Posted by Cat Nguyen on Apr 13, 2012 | Comments Off
Here are a few questions my clients ask about short sales.
- Are Dallas short sales great deals right now?
- Does that mean it is a short process?
- Can I close on the home in 1 month?
- Why is it taking so long?
- Oh my gosh!! Why is it priced so low?
- Why did the bank counter so high?
1. A short sale can be a very great deal. What makes it a great deal you ask? If there are damages to the property the house can be a great deal. The majority of the banks wants to get rid of their properties and prefer not to go through the foreclosure process. It cost them more money to go through the legal proceedings, holding fees, legal fees, and then sell the property. There are numerous reasons financially why they prefer to short sale.
2. When it comes to short sales it can be a very long process!! The most import people in this transaction are the listing agent! If the listing agent does not know how the short sale process works then you should go and look at another property. Make sure your buyer’s agent knows the process and have him/her ask the listing agent if they have any experience in closing short sales! Have your buyers agent ask the listing agent if an appraisal or broker price opinion has been done on the house. This will increase the chance of the short sale closing. When the appraisal is done you should have an idea of what the bank will sell the house for. If you are interested in a short sale please seek out a Realtor that knows the process. Ask them how many short sales have the successfully completed.
3. Can you close in a month? It has to be approved price by the bank could safely close within 45 days. Thus if there are no additional things missing from the seller. Always try and give your lender and the bank time to get all the proper documents finalized and delivered to the title company. This is only when you have an approved price from the bank. If you don’t think that is the goal you are trying to achieve. An approved price from the bank.
4. What the heck is going on? I’ve been waiting for 4 months? If a seller has not provided required documents to the bank then the short sale will not be approved. If a listing agent does not work side by side with the seller to help them retrieve all documents to the bank then you will not be able to buy the house. In order for the seller to complete the sale they must provide documents such as income tax, bank statements, a hardship letter, etc. The bank may require updates on these documents. If the seller does not provide them then the short sale will fall apart. Most of the time the buyer we find that the buyer is waiting because the seller has not provided a document which results in a long wait. There have some instances that the listing agent did not know what documents are required. Very important to know. Not all agents know how a short sale is processed.
5. Oh honey!!! This one is priced dirt cheap? Call our Realtor so we can see the home tonight at 7pm. A low listing price does not mean the bank will sell it for that price. You will only know what the accepted sale price will be when the house has been evaluated by the bank. Some listing agents list the home low to procure an offer. Most banks require an offer to start the short sale process.
6. These banks are crazy! No one will that price for a house in that condition. Damages to a home will affect the value of a property. Get contractor bids so you can have an accurate price on what the repairs will be. Market conditions can also change that will affect the value of the property. If this happens ask for a 2nd evaluation.
Jim and Associates will continue to help buyers and sellers with buying or selling short sales. It is a very lucrative process and you have to pay attention to details. Please seek out an expert if you interested in searching for a distressed property or a regular home. The real estate market is always changing so make sure you have an expert on your side! I hope you a found my article enjoyable and informative! Make sure you contact us before you buy or sell a short sale!
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