Short Sale Transactions are very different from the usual home buying process. What is involved is, more waiting time, and way more leg work for you Real Estate Agent. Since their is a rise of Short Sale homes on the market, many training companies see it as an opportunity to train agents in the Short Sale area, ultimately giving them a certificate upon completion. This may seem like a plus to have your Agent trained in a short sale, it is much better that they have significant and actual experience doing the work, from start to finish. Finally, below are some qualities and pointers on short sales when seeking to hire an agent for the Short Sale Transaction.
How to Find the Best Agent for a Short Sale 2021
So, What is a Short Sale? Firstly, a Short Sale is a property that are priced below the market value. Generally, those properties are most likely a short sale. Secondly, a Short Sale is when a home, property, or estate is sold for less than its unsettled mortgage.
- With not enough equity in the home to pay off the mortgage, homeowner’s may consider a short sale. Therefore this will allow incurring bad record of a foreclosure on the homeowners record. In order to do so, the mortgage documents supporting their claim must be presented. Demonstrating an inability to pay off the remaining mortgage to their lender is a must. Once the bank or lender comes to the conclusion that the homeowner’s documents support their claim of inability to pay off their remaining balance, a decision is made. If the documents presented and are approved by the bank or lender subject to the approval of the lender, then the property can officially be placed up for sale.
- In the meantime, a prospective buyer will have to make two offers. One offer to the Seller, and Also to the lender. At this time, they must wait for short sale approval letter.
So, How to Find the Best Agent for a Short Sale 2021?
As a home buyer, what are the advantages and disadvantages of buying a short sale?
- Firstly, Short Sale Properties are Usually Cheaper than the Remainder of the Market – Banks, Lenders and Homeowners do not want a home to remain on the market very long. Therefore, they price the home low to attract buyers.
- Secondly, There is Less Competition with other Buyers – The short sale process can take a long time. In the end, most buyers are not prepared to wait. Ultimately this will lower the number of prospective buyers that will make an offer on the home.
- It is a Long Process – Firstly, the approval of your offer is passed from seller to lender through the escrow process.
- Paying Costs may not be Included in the Selling Price – Several of the costs are closing costs, and often times the lender will not split. Additional costs are not uncommon.
- Short Sale Homes are Sold Strictly “As Is” – A decrease in price based on repairs, reduction in price for a short sale will be declined if ask for a decrease in repairs after an inspection or necessary repairs. This may be counteracted by including several contingencies on home damage and purchase contract.
- Sometimes you may Need to Pay Part of the Commission – Ultimately the lender makes the call on commissions for short sale transactions. Typically a Seller’s Agent is paid more. Buyer’s agents may request a h igher commission to be included in the Buyer’s Brokerage Agreement.
What agent qualities should I look for when deciding to buy a short sale home?
How to Find the Best Agent for a Short Sale 2021
- They Agent has handled short sales before – An agent who’s not only handled but closed short sale transactions is imperative. If they have closed several, it is ideal. This means the agent understands the necessary legwork short sale transactions require. They could also put you in contact with several others to aid in the negotiation process.
- The Ability to Explain the Entire Process of a Short Sale in a Comprehensive Manner– This is important. Because, having them explain all the necessary measures involved in a short sale transaction. This way, you will be well prepared to what needs to be accomplished. Ascertaining whether they have enough knowledge to handle for the transaction.
- Well Knowledgeable Agents to Spot Red Flags – Experience is extremely important in short sale process. Easily detectable are possible legal or tax consequences. Once a red flag is spotted, the Agent can direct you to consult with your hired attorney on how to properly address the issue.
- They are Knowledgeable on Banks and Lenders – The lengthy part of any short sale process is on the bank and lenders side. The agent will need to be aware of every update. Finally, an agent who has closed a lot of short sales will know how the banks and lenders fare in the entire process. As a result, this can shorten the length of the process. In conclusion, your agent would already know how to expedite the process through strategies and make it as smooth as possible.