We've fallen in love with a short sale listing. What do we need to know in order to make sure we get our offer accepted and the short sale closed?
If you just have to buy that short sale, here are a few tips to help you survive the process and hopefully close the sale.
Short sales rarely close in less than 90 days and some banks regularly take six months or more just to respond to your offer. If you’re not prepared to wait at least 120 days to get an acceptance, rejection, or counter to your offer, you’re probably better off staying away from short sales.
Make Sure the Short Sale is actually a Good Deal
Many consumers have gotten it into their heads that all short sales are great deals. Check the comparable sales to see if the value of the house truly outweighs the time and potential headaches that come with the short sale process. Keep in mind that many banks require the property to sell in as-is condition. Also, unless it has already been approved by the bank, the list price means little. A full-price offer is no guarantee the sale will be approved.
Submit a ‘Clean’ Offer
Don’t ask for a bunch of seller concessions in your offer. Many banks have guidelines in place that automatically reject offers asking for such things as seller-paid closing costs, home warranties, and repair allowances. Often the terms of the contract are just as important to the bank as the purchase price.
The Listing Agent will Make or Break the Deal