Find Your Home!

Monday, October 21, 2013

Short Sales - Know the risks whether buyer or seller.

Although they are not the major player in the Viera and Suntree (Melbourne, Florida) real estate market they once were there are still some short sales on the market.  The actual number is eleven as of today.

A short sale is a situation where the probable selling price of a property will be less than the mortgage(s) owed.   Short sales require that any offer accepted by the owner be forwarded to the lender for approval (referred to as third party approval) which can take time - maybe six months or more!

Image courtesy of mrpuen at FreeDigitalPhotos.net
The above paragraph defines the risk.

The risk for the seller is the foreclosure process may still be going forward even though a short sale offer is being processed.   The risk for the seller is an approval will come but with conditions requiring monies be paid or a separate note for the difference be signed.

The risk for the buyer includes the aboveIf the lender forecloses or a deal can't be worked out between seller and their lender, then the deal is dead.

An additional risk for the buyer is the property condition.  Most buyers wait until the approval is received before going forward with a home inspection.  Why risk three or four hundred dollars now for a home that may not even be approved for sale?  

In a market where the prices are increasing the six months of sitting and waiting may cost more than the "deal" potential of the missed short sale.  Many times the money lost with a bad inspection is rewarded with a better price on a replacement property.

With a short sale some things are a gamble.  Know the risk.

Considering selling your Viera Florida home?  Call me at 321-693-3850 or send me an email for a free market analysis.

Follow by Email