If you’re just joining us, this is the second part in a two-part blog series on one of the biggest challenges of purchasing short sales. To read the first post in the blog series, click here.
In a short sale, there’s usually a negotiator whose job it is to negotiate with the bank on behalf of the buyer and seller, and they do their best to represent what the contract says, in this case, a $200,000 sales price. However, there is a chance that the bank might ask for a higher price that is closer to market value than the contract price. A lot of times, this doesn’t end up happening – as they say, banks are in the business to make money, not sell real estate. Often a bank will just want to settle on the deal as quickly as possible. However, it’s possible that the bank might ask for a higher sales price. If my client is uncomfortable paying it, she could just walk away, because her agreement to purchase the home was based on the sales price in the short sale contract. However, the sad part is that she would have spent three months of her condo search in limbo, waiting in vein for the short sale approval, which would feel like a waste of time.
There are a lot of advantages to short sales, so I’m not at all saying that as a home buyer you should count them out. If you have the patience and flexibility as a buyer, short sales can be a a great way to save a significant amount of money on a home purchase. I just like to try to keep all my clients and potential clients informed of the advantages and disadvantages of every kind of real estate transaction they might encounter. If you'd like to learn more about how short sales work, give me a call at 703-462-0700.
If you’re looking for a home in Northern Virginia, call me at 703-462-0700 so I can help you in your search. I’m am experienced buyer agent who grew up in Falls Church City and has in-depth knowledge of the Northern Virginia real estate market. I’m also an expert with contracts and a skilled negotiator who will do everything in my power to get you the best deal possible on a Northern Virginia property. If you’re a home buyer who's looking at short sales in Northern Virginia, you can probably tell I know what I’m doing when it comes to helping buyers navigate their way through this lengthy and potentially frustrating process.