Buying a short sale can be one of the most stressful processes you’ll ever go through. I recently bought a short sale so I should know! Here are some things I’ve learned over the years to help guide you through:
- Justify Your Offer – If you can write a cover letter explaining why the property is worth what you are offering, it can go a long way. What are the current comps in the neighborhood? Does the home need a new roof? Does it have mold, or need painting or new carpet? The more detail you can provide the bank, the more likely they will accept your offer.
- Arms Length – The bank is losing big money on a short sale, so they want to make sure the seller isn’t profiting in some way from it. You’ll be required to sign an affidavit that says you are not related to the seller and there are no hidden terms to the sale.
- HOA Fees Can Kill the Deal – Banks will typically only pay 1 year in back HOA fees. It’s very common for sellers to be further delinquent than that. When you make your offer, keep in mind that you may have to contribute towards the HOA payoff in order to get the deal done. If you allow for that ahead of time, there will be no surprises later.
- Don’t Take it Personally – The majority of buyers take it personally that the bank will not respond to their offer in a timely manner. Remember the banks have their own procedures and work at their own pace. Don’t lose your cool because of the bank’s delays- expect and anticipate the delays. Staying calm could possibly get you the best deal you could have ever wished for.
- Patience Pays – Sticking with the sale is the biggest obstacle to overcome. Don’t let frustration get the best of you. It’s common that shorts sales will “sell” three times over before they actually close. Buyers get anxious and walk away from the sale. If they would just stick with it they could get a great deal, but the statistics say most buyers will walk. Don’t miss your opportunity.
I hope you’ll keep these tips in mind, wherever you are in the short sale buying process. It can be very frustrating, however, preparing ahead of time will allow you to navigate the sale and land a smooth closing!
Need help Selling, Buying, or with Property Management? Please contact Gabe for FREE advice at: 239.825.2234, Gabe@GulfPointeProperties.com or www.GulfPointeProperties.com Gabe Mellein is the broker of Gulf Pointe Properties, He has 8 years experience in the SW Florida Real Estate Market. He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate.