Recently the housing market has been more favorable to buyers. Buyers can take advantage of the short sales and foreclosures because they are sold at a lower price. While this may be true, buyers should be aware of some precautions before considering a short sale or foreclosure. Home prices can be attractive due to the low interest rates. Consumers should not be wrapped up in the excitement of the price of the home and should consider other factors when trying to find the perfect home.
Is the home a fixer upper? Most homes sold as a short sale or foreclosure requires the buyer to “fix up” a majority of the problems. It is important to factor in the cost of repairs and renovations to suit your needs. In order to find out the problems with the house, do not skip out on the home inspection. It may seem like a good idea at the time to save money but it could hurt in the end.
A misconception about short sales is the process is fast. “Short” means the owner is short on funds and is having to sell the home that is less than the mortgage amount. This does not necessarily mean the process will be “short”. Most short sales take longer than a normal real estate transaction. A short sale does not necessarily mean the owner wants to sell but they do not have a choice because their credit is declining. The ultimate decision is up to the loan provider.
Do your research. Research a short sale professional that has experience and can guide you through the process. They will know the best options for your situation and can help you avoid an “red flags” associated with a short sale.