Short Sale Basics - Palm Harbor Florida Real Estate News
In our current market clients are always asking about short sales so here is an abbreviated short sale 101:
First of all, it is generally anything BUT short. Short sales can easily take over one year before they actually make it to the closing table, so if you don't have that kind of time don't consider a short sale!
Who sets the asking price? The listing agent and the seller. Often the listing agent will suggest that the price is set rather low to encourage offers. The entire process doesn't REALLY begin until that initial offer is made. At that point, the bank will set the asking price. The final decision is always up to the bank.
How about mortgages? Does it matter how many mortgages are on the property? Absolutely! If there are two mortgages, they are generally at two different banks! The second mortgage holder gets an extremely low amount. Often that second loan holder will say that because of this low figure, they want a certain amount to be paid by the buyer or seller. The seller normally does not have the funds (that is why there is a short sale in the first place) and it is up to the buyer to jump in here.
Short sales are sold AS IS. You can and should have a home inspection but know that the banks generally do NOT make any repairs. Some short sale properties have the utilities turned off and may ask the buyer to pay to have them turned on for the home inspection.
Once the bank accepts your offer things move quickly. You need to be available to sign papers and jump through the bank's hoops or the deal will NOT make it to the closing table.
Granted, there are some great deals to be had here in Palm Harbor Florida, but short sales are a long and winding road. Be prepared to stay the course once you write that initial offer!
Buying or Selling - - Call Barbara-Jo for all of your real estate needs! - - 727-512-0910
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Barbara-Jo Roberts Berberi, MA
Charles Rutenberg Realty
Serving the Greater Palm Harbor Florida Area, including Crystal Beach, Dunedin & Tarpon Springs Florida
Waterfront condos & homes
Your Real Estate Specialist
If you are thinking of purchasing in the Palm Harbor, Crystal Beach, Safety Harbor, Dunedin, Tarpon Springs area or along our pristine Gulf Beaches, give me a call! With years of experience in the local real estate market, I am here to assist you in making one of the most important purchases of your life! Give me a call today! Find out for yourself why living along the Gulf Coast is indeed living in Paradise!