Short Sales- Good for Seller, worth your time?

Time and time again, buyers are contacting me and instantly informing me that they want to buy a short sale or foreclosure. I fully understand everyone’s desire to get a good deal on a home, but not every foreclosure is a great deal and short sales often times only hinder a buyer’s chance to obtain that goal.

When writing an offer or perusing a short sale the buyer must understand that once the owner/seller signs off on the offer and sends it to the lien holder for final approval, they are typically under contract for a certain amount of time depending on how the offer was written.

The list agent may ask for 30, 60, 90, or even 120 days to obtain “third party approval”. Anything less than that would be near impossible unless there had already been an offer that did the initial waiting. That commitment is negotiable, but it has been my experience that agents will request 60 days for approval. Meaning for 60 days you cannot write on any other properties. You are legally bound by a contract until that time expires.

Not to mention, majority of the time, the approval never comes and if it does you may be shocked to learn that the bank actually wants a higher sales price than what it was listed at. The list price is set by the agent and they may have no idea what the bank is looking for unless they have already had a buyer submit an offer who did the waiting.

There are many other negative variables that weigh against short sales, but the main issue is YOU NEVER REALLY KNOW how long it will take and if it will be approved.

Montgomery County MD Realtor, Ben White
240-848-3322