I have a client who is shopping for a starter home. It's just him and his 4 year old son, and he is looking for a comfortable payment and a clean neighborhood. We keep looking at homes for him, but keep running into one thing over and over: The Dreaded Short Sale!!!
How does a home-buyer in the lower price range know if a short sale is right for them or not? It's going to seem like all the great deals are going to be a short sale or bank owned property, so be ready for what it entails. First off, lots of patience! Short sales can routinely take 6 months to come to close, and are always sold as-is... meaning if the inspection comes back with negatives, you must live with it, or move on.... even further lengthening your search.
Also, check with your lender to see if they have qualified your loan with short sales recently. Often, some VA loans and other conventional loans will not get approved by the selling lender, because of the demand for security after the inspection.
Short Sales are for:
- investment properties
- buyers in no-hurry
- no set move in date needed (for new school district for example)
Short Sales are NOT for:
- buyers with need to move fast
- buyers that may be using a VA loan (may not approve for a short sale)
- picky buyers that may ask for concessions and improvements