Should I Consider a Short Sale for My Next Home Purchase?

If you would like to get a good deal on your next home, then you should not rule out a short sale purchase. A short sale is when the seller’s bank will agree to accept less than what the seller owes on their home. This often happens when the seller purchased or refinanced at the height of the market but now the property is not worth as much and the owner cannot sell the property for enough to cover the mortgage. A short sale is a good option to consider when purchasing a home if you are looking for a sound investment.

Reduced Sales Price
In theory, a short sale purchase allows the property to sell at its current market value. Many buyers though are able to purchase a short sale below its value. This is due to the time the property is on the market. Often the initial list price will be set to cover the mortgage which will cause the property to sit on the market for a longer period of time. Once it is reduced to its market value, the property is considered a stale listing and will not have as many showings. The buyer who finally writes an offer will typically offer much lower than the list price. The bank will see how...Read More