Everybody wants to get a good deal on whatever they buy and right now a lot of people are looking at short sale properties thinking that they will be able to get a bargain on a house. By now, most buyers are aware that buying a short sale can take a long time and they are prepared to wait months on end for the seller’s bank/lender to make a decision in order to strike a super deal.
The problem is; however, that often times a short sale is not a deal at all. The goal of the bank/lender holding the mortgage is to recoup as much money as possible. If the owners purchased the house during the housing boom and didn’t have much of a down payment, odds are that the house isn’t worth what they owe on the mortgage and won’t even appraise for what is owed on the mortgage. However, that doesn’t stop the bank/lender from trying to get a buyer to purchase the property for the appraised value or for more than the appraised value.
Most residential contracts have an appraisal contingency stating that if the house does not appraise for the purchase price, the seller will be asked to reduce the purchase price to the appraised value. Let’s face it, purchasing a house in today’s market at the appraised value is quite easy to do, so why would anyone put themselves through the anguish of trying to purchase a short sale property if he is not going to get a terrific bargain.
Recently, Elizabeth Razzi wrote a great article in the Washington Post, entitled, Where Short Sales Stumble, explaining why most short sales never end as a successful sales transaction.
If you are thinking about buying a home, consider learning about the home buying process including how to get pre-approved, house hunting tips, the components of an offer, negotiation strategies, how to buy a short sale or foreclosure property and much more by attending our Seminar on June 29th, 7:00-8:00 p.m. at the SunTrust Bank, Mays Chapel Branch.
Wishing you sunshine everyday and the home of your dreams,
Jeri
