[responsivevoice voice=”UK English Female” buttontext=”Autoplay”]
Benefits of a Short Sale to a Home Buyer
Home buyers can take good advantage of a short sale, as well, with several advantages:
1. Reduced price:
Primarily, the big benefit is the increased odds of getting the home for a reduced price,
knowing that the house is in short sale mode, and that the owners, and likely even the bank or lender in many cases,
will want to sell the home
and get out from under the home loan.
As any real estate agent will say, seller is a seller who wants to cut a deal, so a low offer has a better chance of being accepted in a short sale than in a traditional home sale negotiation.
2. Less competition:
That opens up the field for home buyers with more patience for a short sale, and who’ll face less competition for the home.
Negatives of Short Sales to a Home Buyer
Short sales can have negative repercussions for buyers such as:
1. A longer home-purchase timetable
For buyers, the paperwork process is longer in a short sale (usually up to 120 days) than in a traditional home sale (usually up to 45 days) and that may be a deal-breaker for home buyers.
2. Lender interference .
Lenders may also get directly involved in the home price negotiations, often asking for a higher sales price than the home seller in order to recoup more money on the home loan.
3. The property may be in disrepair
It’s also highly advisable for a short sale buyer to work with a real estate agent well-experienced in the short sale process.
It’s also strongly advised that a short sale buyer hire a home inspection professional to thoroughly examine the property, as short sellers may not have the financial resources to keep up with home maintenance and repairs.