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Navigating a Short Sale Purchase

shortsaleMost people don’t go looking for short sale homes on the market.  In the majority of situations people don’t want to deal with the extreme amounts of time that closing a short sale home can cost them, especially because their offer can always be denied by the bank after their long wait.  If your dream home happens to be a short sale listing then here are some tips that can help you to navigate the storm of it all.

#1 – Don’t undervalue your home.  Many people are quick to save a dime in this economy and to really take advantage of a person’s need to sell a home quickly by offering as little money as possible to get the home.  Playing these games with the bank is just going to be a waste of your time.  On rare occasions will you be able to get a significantly reduced price compared to what the property is listed for.  To really know what the home is worth you’ll want some experts to weigh in.  A good realtor will pull up some comparative properties for you (these are properties in the area with similar features that have recently sold).  This can give you a more accurate idea of what the home should be listed for.  In some occasions you can offer lower than asking, but dropping the price drastically will most likely end in denial from the bank.  In other cases you might need to make an offer that is higher than asking price to ensure that you beat out other offers on the home.

#2 – Work with a good realtor.  You’ll be really nervous during this time and if the seller’s agent is not already on top of communicating with you and keeping you in the loop throughout the whole process of the short sale then you will really need to rely on your realtor to find out how things are moving along and to keep you informed.  You’ll need to know about any paperwork, about getting your loan approval and paperwork together so that it is ready to go as soon as the offer is approved.  Mostly it will just be nice to be kept in the loop and informed regularly of activity and inactivity in regards to your offer and purchase process.

#3 – Understand your rights.  If you are looking into buying a short sale home you need to understand your rights.  Often these homes are sold as is and so banks aren’t willing to negotiate on dropping the price once the inspection has been done, but understanding your rights and how short sales work can really help you to feel more at ease when making decisions in these particular areas.  Working with a lawyer to get some questions answered or working through the Nevada Foreclosure Mediation Program can real help lift these burdens.

If you follow these tips then you are sure to have and (almost) stress free short sale experience.  The home of your dreams really can be yours, even if it is a short sale, with just a little elbow grease, patience, and perseverance.

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