Buying a short sale house is very different from buying a typical house for sale. In a regular sale, if you like the house and the owner is ready to sell to you, it is a done deal. As long as you have the financing for it, there’s nothing to worry about. It is different when buying a short sale house.
There are advantages and disadvantages to buying a short sale house. If you’re looking for a great house at a lower price, then it is a great idea. It takes time to close, though, and that might be the major downside.
There’s many other factors as well which make buying a short sale house complicated. To make your decision, it is important to know everything involved with buying a short sale house. This post will help with that.
What Are the Advantages of Buying a Short Sale House in Charlotte, NC?
If the pros outweigh the cons, then it’s safe to say buying a short sale house is a good idea. Here are the advantages:
- The price! This is the major advantage when buying a short sale house. The homeowner owes the lender money, which is what leads to a short sale. The lender’s major concern is getting their money back. So, they will jump at an offer that is as close to the appraised value as possible. As a buyer, you’ll be able to offer lower than what you’d pay otherwise to get the house. Of course, this doesn’t mean you can make a low-ball offer, and still expect to get approved. With a capable agent by your side, you should be able to offer an amount that will save you money and get you the house as well.
- It can sometimes make financing easier. A short sale only occurs because the seller could not pay the mortgage any longer. The lender would love for the payments to continue, even if it is from someone else. That’s why if they see an offer that they like, they might offer the buyer financing. That is if their credit is good, of course. This makes the process so much easier, and helps cut some time off the long wait that a short sale usually has to close. This financing is more attractive with perks such as lower interest rates or the like.
- You have less competition. During a traditional home sale, you might suddenly find the house taken by a buyer with a better offer. There’s not much you can do about this. It might have been your dream house and such an outcome can be sad. With a short sale, you tend to have a lot less competition. This makes an outcome like this very unlikely to happen. A lot of people who buy houses are doing it for the first time. They tend not to go for the complications of a short sale. Even experienced homeowners may not want to deal with the time they’ll have to wait.
What Are the Disadvantages of Buying a Short Sale House in Charlotte, NC?
There are quite a few cons attached to buying a short sale house. You should make sure that none of these are deal-breakers for you before going for it.
- It takes a long time. This is the biggest issue that many have with shot sales. They take a long time to complete and close. It can be even more stressful because there is no fixed time period that it takes. The fact there are at least three parties involved means that a delay from one affects all. If there is more than one lender, it can get even more complicated. It can sometimes take more than a year for a short sale to close.
- The lender might reject you. If they think that your offer is too low, they may reject it. Not only that, they may take months to decide before they do. If it is close enough to what they are looking for, they may make a counter offer. This can be good sometimes, but if you are not willing to pay that price, it is the same time wasted.
- The price may change. This is different from getting rejected. The price that you see listed is sometimes not approved by the lender. It might sound like a good price to you and the seller, but the lender may have a different opinion. This can come as a shock when you get asked for a price much higher than you expected. With a good agent by your side, you shouldn’t fall into this avoidable mistake.
- You are at risk of receiving a house in need of repairs. A homeowner is still able to fix any problems that the home may have before it gets sold in a short sale. The thing is, many of them won’t. It might not be because they don’t want to. A short sale is a point that a homeowner only reaches because of financial hardship. They likely don’t have the money required for expensive fixes or repairs. Sometimes the state of their hardship can show in the maintenance of the house. It is important to ensure that you have an inspection done before committing to buy the home. If you do decide to go for it after an inspection shows damage, get ready for the necessary expenditure.
Tips When Buying a Short Sale Home in Charlotte, NC
If this is your first time buying a short sale home, here are some tips to make things a bit easier:
- Get an experienced short sale agent. Not all agents deal with short sales on a regular basis. Some have never! In cases like this, you want one who has closed many short sales. The agent will know the common issues that can arise and how to avoid them.
- Ensure that you have an inspection done! Otherwise, you won’t have wiggle room on the price if you find the house needs repairs. This is a major way this differs from a regular sale. Have a thorough inspection done before you agree to anything.
- Try your best to keep your credit optimal. Short sales are better with cash, but many people don’t have this option. Make sure that your credit is as good as it can be before proceeding. It’ll make financing much easier and the lender more likely to approve you.
Has a short sale house caught your eye in Charlotte, NC? What you need is an agent who will do her best to close that sale for you. There are a lot of ways a short sale can go wrong, so experience is important. Nancy Braun has exactly that.
Call Nancy Braun at 704-997-3794. In Charlotte, NC, there is no one better for the short sale business.