San Diego Homes

San Diego Homes: 5 Important Things to Know Before Purchasing a Short Sale

A short sale is an extremely complex undertaking. It involves negotiating with the bank and communicating quite frequently with them. In Mindi Landry’s 34 years of San Diego Real Estate experience, she has negotiated many successful short sales transactions, on the part of the seller and the buyer.

Know the value of the property. This is where an experienced Realtor comes into play. They are experts at getting the comparable values of recently sold homes in the neighborhood and can tell you exactly what the home is worth. Short sales traditionally are sold a little below market value. This is to attract a buyer that may not normally want to wait or deal with the time it takes to complete a short sale. The low price is probably why you looked at the listing in the first place. Be careful don’t make your offer too low, the lender will never accept it. Your offer needs to be right around market price for the bank to consider it.

Be familiar with the current mortgage situation on the home. Your Realtor will be able to get this information for you. Make sure you know how many mortgages are on the property and their amounts. An experienced Realtor, like Mindi Landry, will be able to tell you if the lender is easy to work with and what you can expect to happen during the transaction. Some lenders make negotiating a challenge. Knowing this will help you decide how much you need to offer for the house.

Know the short sale history of the listing agent.
You’ll want to work with a listing agent that has successfully completed, at least, several short sales transactions. You’ll want to make sure the listing agent will be able to see your transaction all the way through to the end.

Have the sellers completed and been accepted for a short sale package? A home seller with  a distressed property needs to complete a proper short sale package before they list/sell the property. This package will determine if they are even eligible for a short sale. The seller will need to include a hardship letter, their tax information, pay stubs and bank statements. Your Realtor will be able to let you know if they will be accepted to move forward with the short sale.

Know how many other offers have been made on the property. This will help you of choose your offer price. If there are several other offers, you’ll know that you need to offer a higher price for the property.

Mindi Landry has 34 years of experience as a Realtor in Escondido and the surrounding area. She has successfully negotiated many short sales for buyers and sellers. Call her at 760-737-3767 to find out more about short sale properties.

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