August 22, 2008
3 Questions to Ask Before Buying a Gulf Shores Real Estate Short Sale
When the real estate market starts to decline, everyone starts talking about short sales. A short sale happens when the bank is willing to accept less than what the sellers owe on their Gulf Shores real estate. This means you may find a great deal on your next home. However, short sales aren’t right for everyone and they can be very frustrating to deal with. Before you decide to buy a short sale, you need to ask yourself some important questions.
- Can you afford to buy the property as-is? You can and should have an inspection done before you buy Gulf Shores real estate. However, with a short sale, the seller is most likely not going to be able to make any repairs before they sell the property. After all, they’re selling it because they don’t have the money to make the payments. Make sure you’re able to afford any repairs the property will need.
- Is it really a good deal? You need to pay attention to the property’s value. How does the price compare with what other properties are selling for? Paying $175,000 for a home when other homes are selling for $130,000 means you’re really not getting a good deal. Just because the home is a short sale doesn’t mean it’s worth your time and money.
- Are you prepared to deal with the bank? The bank’s only concern is getting their money from the home sale. To ensure this happens, the bank will require extra paperwork. You can bet that they will take their ever-loving sweet time negotiating. I have even seen some addendums from short sale companies make the buyer acknowledge that it may take four to six weeks to get a response. It doesn’t matter to them how long you have to wait. If you don’t have time to wait for the bank to approve the short sale, you probably should look for a different home.
- You should also be aware that some lenders actually put clauses in their addendums saying that they can accept other offers at anytime prior to closing. That’s right! If you get an accepted contract on a short sale property, the lender can actually accept a better offer that comes in the day before closing!
Right now is a great time to buy a home, whether it’s a short sale or not. Actually you may find that a foreclosure or even a good old motivated seller might be an easier process. Whatever the case let me help you find the Gulf Shores real estate that best fits your budget and needs.
Call me today at 251-978-7118 or email me at John@JohnRicks.com!