If you’re looking for real estate short sale information, this article will shed some light on some common questions that homebuyers have. I recently got a question from a client about short sales, so I went ahead and wrote a blog post on the topic.
Real Estate Short Sale Information – What Are the Downsides?
The biggest downside of short sales is the much longer closing period. Standard closings in Northern Virginia are usually around 30 – 45 days. Short sales take a minimum of three months to close, but often much longer. My shortest short sale in the last couple years has been 4 ½ months and my longest has been 6 ½ months.
Another downside is that the sale needs third party approval from the seller’s bank, since they are taking a loss on the bank note. This creditor approval process takes a long time – usually 2-3 months. If the bank comes back and doesn’t approve the lower sales price that you and the seller have agreed on, you can walk away from the sale, but you’ll have wasted that time waiting while you could have been shopping for other properties and making other offers.
What are the Upsides?
All that said, the biggest upside is that you can often get a really awesome deal on a property. It just depends on your timeline for buying and how patient you are.
Short sales are always as-is sales, which means that you can still have a home inspection and void the sale after the inspection if the property is in such terrible condition that it becomes a deal breaker for you; you just can't negotiate for repairs and/or cash credits after your home inspection, like you can in standard sales.
Need more real estate short sale information? Would you like help navigating the purchase of a short sale? I'd love to help you buy or sell a home. Call me today at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com.