Structured to move at a much more rapid rate than the standard sales process, a short sale is when a property is sold for significantly less than its market value and less than what the current owner still owes on his or her mortgage loan. This is a common alternative to foreclosure and it can be used as a last ditch effort to avoid the long-term penalties of mortgage loan default. Although short sales have helped countless homeowners avoid foreclosure proceedings, not all property owners are qualified to seek these arrangements and not all short sales are actually short. This last point is important to keep in mind if you’re thinking about buying a short sale home.
Choosing a Real Estate Agent for a Short Sale
In real estate, a short sale is a complex and highly specialized process that requires significant and niche-specific experience. Whether buying or selling, putting the first Irvine real estate agent you find in charge of these efforts could be a major mistake. This is a lot like asking a general physician to handle a major knee surgery. If you’re looking to short sale your home or want to buy one, always look for agents or companies that have ample experience with these negotiations. They’ll have the best ability to expedite this process and arrive at a sales price that buyers, lenders, and sellers all feel comfortable with.
The Pros and Cons of Short Sales
For buyers, there are obvious advantages in buying a short sale home. Foremost among these is the ability to make a modest budget go further. Buyers who aren’t qualified for funding or who may not have enough funding for the traditional purchasing process can get reasonably sized homes in reasonably good locations. The major drawback, however, is that you get exactly what you see when buying these properties. There is no way to know for sure about the condition of the home’s mechanics, including the plumbing and electrical wiring systems among other things.
Short Sales and Time
Short sales are not guaranteed to be short. In fact, they rarely are. The bank is the final authority in these deals and it could take as long as three to six months to get a firm response to an offer, if one is ever issued at all. For sellers anxious to avoid foreclosure, the short sales process is worth a try. Buyers, however, should always be aware of the potential risks and delays before proceeding.
Looking at homes for sale in Irvine? Don’t go at it alone, especially if you’re considering short sales. Working with an experienced agent who is well versed in the short sale process will help ensure a smooth transaction. Call (714) 454-6304 and schedule an appointment today!