Should You Buy a Short Sale Home?
Whether it’s a first-time home purchase or a third, many people wonder if a short sale is worth the time, money or effort. As with any investment opportunity, it’s important to weigh the pros and cons. A short sale home can be a great investment opportunity and here are five reasons why potential buyers should consider a short sale.
Typically a short sale home is offered at a lower price than it may actually be worth. This may be the amount of money that is still owed on the loan or however much the bank is willing to settle for in order to move the property. This can translate into huge savings for buyers, who can often get more house for the money when considering a short sale. This lower price is especially helpful to those who have already had to turn to Mobiloans and other financial institutions for help with other bills in the past. You won’t have to find as much room in your budget for the payments.
Quality of Property
In comparison to a foreclosure, short sale homes are more likely to be in better condition. Current owners of homes that are being offered as short sale are looking to get as much money as they can to appease their bank. To do this, they need their home to be more appealing to the buyer and that means not trashing it or even sprucing it up a bit and doing minor upgrades. Meanwhile, a foreclosure may make the homeowner trash the area just to make it more difficult for the bank to sell the property.
Less Haggling, Less Hassle
Though the wait to hear back on a short sale home can be excruciating, there is typically less haggling involved. Typically with a short sale, the buyer does not put in an offer and then hear a counter back from the current owner or from the bank. The offer is put in and the bank either accepts or rejects it. Rarely is there any haggling over price with countering back and forth between buyer and seller. This can make it less stressful for the patient buyer.
When buying a foreclosure, there is a lot of information that may be left out for various reasons. With a short sale, the owner is working together with the bank to get the home sold. Therefore, they are more willing to give out the information regarding their home such as information that may draw in buyers including new windows, remodels, landscaping and more.
No Specific, Set Timeline
When buying a short sale, there is no specific set timeline. This isn’t for everyone, but since a short sale can take several months to be approved, it can be ideal for lose in certain living situations. For example, a renter with another 10 months on their lease or a family still waiting to sell their current property. Without a time crunch, this makes the entire process a bit less stressful with getting moved out, moved in and so forth.
As with any type of large purchase, a short sale home can either be a risk or a waste of time. However, a short sale can be beneficial in terms of sale price, quality of the property and having more information on the home itself. These factors alone may be enough to convince a buyer to check out local short sales in their area.