How Patience Can Land You the Best Deal In Town

Kicking yourself for not getting into the market when it was at its lowest? There are still deals to be found in real estate, without having to buy a fixer in need of major renovations or compromising on location. Short sales are where to turn to find properties available at less than market value. The catch is patience. The ironically named “Short Sale” can take significantly longer to close than a traditional 30 to 45 day sale. Even with laws in place regulating how long it can take for banks to process a short sale, some sales still take years and some never close at all.

The real risk for the home buyer is the loss of opportunity. The traditional escrow period for the buyer to inspect and appraise the property does not start until the lien holder approves the sale. A lot of potential dream homes can come and go while the buyer is just waiting for that very important letter to arrive. However, patience can pay off in a rising market when all those other potentially great properties start selling at higher and higher prices, and the sale is finally approved at the original offer price, made when the market was down.

One other factor that dissuades buyers from considering a short sale is the idea that they are somehow taking advantage of a seller when they are down and out. In most cases, the buyer is actually doing the seller a great service by agreeing to purchase a distressed property. The seller must prove hardship to qualify for a short sale, so most often, the alternative the seller is facing is foreclosure.

Keep in mind, the seller is not permitted to make or pay for repairs on the property and the lien holder won’t pay for them either. If the buyer’s loan requires a repair before the close of escrow, they may be paying for a repair on a property they don’t own yet.