Short sales in real estate occur when a homeowner owes more on their home than the home is worth. In these situations, an owner’s bank has to approve the house being sold at a loss.
Short Sales in Real Estate – Making Offers on These Types of Properties
What sometimes happens with short sales in real estate is that it will be listed at a higher price, but the bank will get lower offers. Ultimately, the seller’s bank has the final say on the sales price, so after there is an agreement on the price between the buyer and the seller, the contract goes to the bank for approval. Sometimes the bank will reject the sales price, sometimes they’ll make a counter offer, and sometimes they’ll accept it.
Short sales in real estate are "as-is" because the bank loses money on the sale, since the seller owes more than the home is worth. So banks don't want the seller to spend any money fixing anything or doing anything to the property before it changes hands, because they want any money the seller has to go towards the money they owe on the home.
Read Part 2 in this blog series on short sales in real estate…
Are you thinking of buying a home in Northern Virginia, but you’re not sure where to begin? Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com so I can start walking you through the process. I love working with first time homebuyers, and it would be my privilege to help you in your journey.