Many buyers are interested in buying a short sale property because they often are sold at a cheaper than average price. However, an obstacle that buyers face when trying to secure a short sale property is being denied by a lender. According to Inman news, “About one in three short-sale listings never sell” because many interested buyers are denied lender approval. However, we expect to see a change in this trend now that the government is offering incentives for lenders who approve short sales.
So, now that that obstacle is being reduced, what can you do to up your chances of buying a short sale property?
- You should try to work with an agent who has a successful track record in buying short sale properties, and who can tell you whether or not it is likely that a certain property will sell.
- If your agent doesn’t want to do short sales, find someone else to work with, otherwise you may be steered away from the property that you want.
- Ask family, friends, and coworkers for recommendations on real estate agent who is willing to work with short sale buyers
Work with your agent, the buyer, and the lender
- Ask your agent to get background information on short sale properties in your area and price range.
- Ask your agent to try to work with listing agents who are also comfortable with short sales to ensure a successful sale for both ends.
- You should also ask your agent to find out how many loans are secured against the property and if the sellers are in default (If there are more than two loans secured against the property, it is likely that the home won’t sell).
- Figure out whether or not the seller is mentally prepared for a short sale; if s/he is not, it may be best to keep looking.