Short sales are not like a typical home sale. Before looking at or buying a short sale, it is essential that you understand what they are and what the process entails. The following details some general guidance on buying Amesbury MA short sale properties.
What is a Short Sale?
Short sales refer to properties where the amount of money expected from the sale will not be enough to cover what the home owner would need to cover expenses, and the seller has no personal funds to make up for the shortage. This can include the home loans on the home, real estate broker fees, bank fees, and other related fees. The lender on the property would be “shorted” what is due/owed to them, which is where the term “short” sale comes from. Properties marketed as short sales do not guarantee that they can actually be sold. The mortgage companies currently holding the liens on the home must all approve the short sale in order for it to go through. This is where it can get difficult. Home owners must submit their financial and personal information, explanation of hardship, and an offer from a interested buyer to get approval from the banks, and if there are multiple, all of them must approve.
Short Sale Benefits
There are quite a few short sales marketed for sale due to the current real estate market, providing buyers with many options. Also, short sale properties are sometimes an opportunity for prospective buyers to get a reduced price on properties. However, they do not match the needs of all buyers.
Short Sale Disadvantages
Short Sale Time Frames
Buyers must move forward with an offer without any indication of whether it will actually be approved. It can also take significant time to receive updates on the approval status (commonly several months or even up to a year). Therefore, buyers needing to close on specific dates should not consider them.
Repair Required for Short Sales
Short sales can often require a lot of repair and are sold without any concessions for problems since the owner has little money and the lienholders are already taking a loss. Buyers should be prepared to handle repairs on their own.
Amesbury MA Short Sale Properties
Buying Amesbury MA Short Sale Properties
Short sale properties are not for everyone, and buyers should be aware of the advantages and disadvantages before viewing or making an offer on a short sale. For prospective buyers with open time frames and the ability to make repairs on their own, it can be a great opportunity to get a reduced price on a home. Consult with your Realtor for additional facts on buying Amesbury MA short sale properties in your area.