Is buying a short sale worth your time? Will you get a great deal? Can you really get a property for pennies on the dollar?
First of all, yes you can get a good deal, but you probably won't be stealing the property. It is highly unlikely that you will end up with tens of thousands of dollars in equity. You will probably get a few thousand in equity, and there is a price that you will pay for that equity. Nothing is free, as they say.
With a short sale, often the home was listed before the bank became involved. If the home didn't sell for a higher price, its because the price was too high. The prices got lower again and again, and if the home still wasn't purchased, chances are the home was over priced.
Keep in mind that on a short sale the sellers are asking the bank to take a loss, and they want to take as little loss as possible. If they bank feels like the seller could get a better offer than yours, they will say no. They are, after all, in the business to make a lot of money, not to get you a great deal. They are the ones TAKING bailouts, not giving them to honest buyers wanting a good deal!
So, how much time are we talking about here? Typically, you can expect to wait anywhere from two to four months for an answer to your offer from the bank. Please remember, this is not the sellers fault, and it has nothing to do with the real estate agents. This game is totally on the banks time line. They are at this point calling all of the shots.
If you are willing to make an offer, then count on about five to six months before you can move in to your new home. Expect several extensions on you contract, and what ever you do, don't move in with your parents for a few days because a few days turns into living with your parents sleeping on the couch for months in the short sale game!
To sum up, if you can afford to wait, you love mystery and not knowing what is going to happen, if you like to gamble, go for the short sale. If you have a specific time that you must abide buy with you purchase, you might want to stay away from short sales.
For more information on Utah real estate, including short sales and foreclosures, please visit http://bountifulutahhomesforsale.com/
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