Short Sales

As a buying agent, I am dedicated to securing the best possible deals for my clients, particularly focusing on bank-owned or short sale properties.

When homeowners face potential foreclosure, many opt for a short sale to avoid this outcome. In a short sale, the bank agrees to sell the property for less than what is owed on the mortgage, absorbing a loss.

While short sales can present excellent opportunities for buyers, there are unique aspects when dealing with banks compared to traditional sellers. My role is to guide you through this process and set clear expectations.

Often, listing agents price properties low without considering outstanding mortgages.

Banks will only begin negotiations once an offer is made. Acceptance from the seller doesn’t guarantee bank approval. Banks may reject offers or counter with higher demands, as they seek to minimize their losses. Listings often include the note, “offer subject to third party approval.”

Banks have the right to increase the purchase price, sometimes above the list price. For example, I once had a deal where the second mortgage holder demanded an additional $10,000, requiring negotiation between buyer and seller. Until all parties approve, the contract remains tentative.

Unlike traditional sellers, banks will continue marketing the property to attract more offers. Additionally, banks are often slow to respond due to high volumes of files. It’s not uncommon to wait 4-6 months for a response.

To navigate these challenges, I recommend making multiple offers without obligation until bank approval. This strategy allows flexibility and increases your chances of securing a property.

Short sales can be advantageous, potentially allowing you to purchase a property below market value. However, patience is crucial, as delays and unexpected price changes can occur.

I enjoy representing buyers in short sales and strive to ensure there are no surprises or unrealistic expectations throughout the process.