Time is getting short for first-time homebuyers who want to take advantage of the $8,000 tax credit…you must close by November 30th, which means you should write an offer in the next three weeks to make sure you close on time.
If you are searching for homes you have likely discovered that there are lots of short sales available…and I have been reminded by clients a lot lately how the term 'short sale' is such an oxymoron. Anyone who has been involved in a short sale, whether buyer or seller, will tell you it is far from short in many ways…and not really a viable option for a buyer who needs to close by a certain date.
A short sale basically means that the seller is selling the home for less than the mortgage, and is negotiating with the bank to accept less than the amount due as full payment.
While some short sales can close fairly quickly…such as when an offer has been negotiated with the bank and the buyer backs out prior to closing…most of the time it takes at least 2-3 months, with 4-5 months not that unusual.
Unfortunately for buyers searching for homes to buy, short sale properties usually stay ACTIVE in the MLS until the bank has accepted an offer, often 60-90 days after receiving it…meaning many listings you find may not truly be available any more…very frustrating!!
Well managed, short sales can be an all-around win…good value for the buyer, forgiven debt for the seller, and avoidance of another foreclosure for the bank.
If you are a seller considering a short sale for your property be sure to work with an experienced short sale negotiator. Your agent doesn't need to be an expert if he or she contracts with an expert to represent you…for instance, I hire a professional negotiator with 13 years of short sale experience, who knows who to contact and how to get the job done efficiently.
If you are a buyer considering buying a short sale property make sure you find out how the process will be handled…how many offers will be submitted to the bank, how many banks are involved, what is their track record of how it takes to get a bank response, etc…AND don't expect to close by a certain date! If you must close within 30-60 days most likely a short sale property is not right for you.
Sharlene Hensrud, RE/MAX Results – Email – Minneapolis-St. Paul Realtor
RELATED POSTS
Any of these may bring in a call from the people who will buy your home. We work cooperatively with other brokers and share information about listings. Communication is the key to our success