Have you been looking for a home to purchase and finally found it, but discovered that it is a short sale? If you were not aware, a short sale is when the price of a home is worth less than the existing mortgage on the home. Here are some reasons for and against buying a short sale home that you should be aware of, such as:
Pros of Short Sales
A short sale is not always something to be worried about for the following reasons.
It's a Home
If you like the home, then think of it as a home and not a short sale. Once all the paperwork is finished, the type of sale will not make a difference when it comes to the actual home itself. Love the home? Then make an offer and hope for the best.
You Can Get a Deal
The nature of the home being a short sale means that it is being sold for less money than the current mortgage. This means the price has dropped on the home significantly compared to what it was worth not too long ago. It could be that you are buying the home after a real estate bubble burst, and you are simply getting a good deal on the home's price.
Cons of Short Sales
There are some drawbacks to buying a home that is a short sale.
The Sale Can Take a While
It is common for a normal home to sell within 30 days of an offer being accepted. However, a short sale is a totally different situation. The lender needs to approve the sale of the home at a lower value, and it can take a couple months for it to happen. This means that you will be waiting to find out if the home is yours, which can be quite nerve-wracking.
For a typical mortgage, the ability to get the home depends on your ability to get financing. A short sale means that the sale of the home is mostly out of your control.
Hard to Line Up With an Ending Lease
Are you trying to time the end of your lease with the purchase of your home? You will be asking for trouble due to the uncertainty of the sale going through. If you do not have flexibility in the current place that you are leaving, you may want to avoid a short sale because your move-in date will be uncertain.
Contact a company like The Boutwell Team for more information and assistance.Share