Many people have found themselves underwater when they are unable to repay their mortgage and other costs like taxes attached to their properties. If you find yourself in such situation where the value of a property has fallen to a level that is not worth the mortgage on it, then you would mostly consider going for a short sale. A Stowe VT real estate expert can help you when you want to enter into short sale for your property because of one reason or another. It is not a smooth running and you will need to consult with professionals in the real estate market to ensure you get the process right. If you are a buyer, you can get an excellent opportunity from a short sale property but there are smart decisions you would want to make and they include:
Be determined to deal with the process
Any process that involves a short sale will be time consuming and often complex to handle. The approval of the short sale by the lender might take weeks, months, or even longer. For many buyers, they will end up cancelling their offers because it takes too long. Therefore, as a buyer, you should be ready to wait for long as this could pay off eventually with the finalization of the process.
Know where to get properties
Real estate agents will list most of the short sale properties, and through local search on listings such as the real estate websites and multiple listing service-MLS, you could be able to find properties that are on short sale. In addition, some properties that are on short sale will not be under open advertisement and therefore, you will need to look for clues.
You may want to look for properties that have listings bearing subjects like “bank approval” “bank to respond”, and similar phrases. When it comes to finding these properties, an experienced real estate agent is the companion you would want to approach. The agents can make a big difference when it comes to finding as well as closing the short sale. There are agents who specialize in short sales and they could help you get the property fast and finalize the buying process much easier.
Understand the cost implications
Before you purchase a property, you need to make sure that you understand the cost implications. If you take a property at a good price, it may increase the odds in times of selling but an expensive one will cut back the profit margin. While the purchase price is just one number, there are many things that will dictate the number. The cost of repairs and renovations you might have to do will give a hint on what you should pay.
The material, inspection fees, permits, trash removal, labor, dumpster rentals, and storage costs, are some of the expenses you will incur when it comes to renovations. There are also carrying costs, which include property taxes, mortgage repayment, utilities, insurance, and association fees. The longer you hold onto a property, the much you will pay on these carrying expenses.
When done at the right time, using the right strategies, the short sale can benefit the lender by avoiding the costly foreclosure and lengthy process. The borrowers also benefits by eliminating or reducing the debt and keeping foreclosure out of the credit report. For the buyer, it is a perfect moment to get a property at a cheaper rate.
Author bio
George Benson is involved in real estate planning and purchases. He offers tips on how buyers can optimize their opportunities in the real estate market.