It’s no surprise that clients often show interest in short sales. After all, they’re almost always priced under market value! While there aren’t as many on the market as there were during the recession (nearly 32% of homes sold as short sales in 2012!), they’re still numerous and you’re likely to come across a few in your home search.
Image via totalmortgage.com
Short sales, which are essentially an alternative to foreclosure, occur when a homeowner’s debt on the home exceeds its fair market value. Because the bank becomes involved in price negotiations, one of the major drawbacks of purchasing a short sale is the time needed. Unfortunately, short sales aren’t short! It’s not uncommon for banks to take months to respond to an offer made by a prospective buyer.
Short sales are also priced a bit lower because they’re typically sold “as-is”. While this doesn’t mean that you can’t get a home inspection (in fact, we still encourage it!), the seller/bank will not make any repairs or provide credit for any repairs prior to settlement.
If you’d like to learn more about a specific home or about the short sale process, we’re more than happy to help! Just give us a call at 215-699-5555.