What Is a "Short Sale" And How Does It Work? Let's Take a Look
Are you a newbie real estate investor who is on the hunt for great deals on local homes in Miami?
If so, you’ve probably heard about "short sale" homes.
It can take a bit of searching just to find one.
Let's take a closer look at real estate short sales to learn how they work and when you might want to take advantage.
What Is A Real Estate Short Sale?
A real estate short sale takes place when a homeowner sells their home for less than they owe on it.
This tends to take place in volatile real estate markets where a substantial price increase took place with a rapid price decrease following after.
Whatever the case, the homeowner is now facing a home with less value than their mortgage.
They may approach their lender about a short sale, or the lender may force it on them.
A short sale can take place even if a homeowner is still making their monthly mortgage payments on time, although that is somewhat rare.
Stick With The Pros When Buying A Short Sale
Without question, if you are considering buying a short sale home you will want to work with an experienced real estate agent.
Short sales take place due to a variety of circumstances, few of which are positive.
You will want work with a real estate professional who knows the ins-and-outs of the short sale process and will protect your interests.
They can also help you understand what happens with the outstanding debt on the property.
Mistakes To Avoid When Buying A Short Sale Home
Unfortunately, there is no shortage of stories about short sale buyers who made a poor decision when trying to score a great deal.
First off, ensure that all of the necessary research is done on the home, its title and any liens against it.
A home inspection is also critical as there may be structural or other issues which led to the decline in value.
Finally, be sure to leave enough time for the closing process as it can take longer than with a traditional home purchase.
As you can see, short sales have their pros and cons.
If you are the one selling the home, you have likely been forced into a short sale due to your circumstances.
If you are the one buying the home, you may be able to swing a great deal on it.
Again, due to the circumstances.
Regardless, our real estate experts at Clover House Realty understand how short sales work and can be a great resource in helping you purchase your first "short sale" home.
To learn more about short sales, contact our office at (305) 400-0170 or call us directly at (754) 368-4921 and speak to our local real estate short sales expert.
We are here to help.