The Pros And Cons Of Buying A Short Sale Home In Florida
Before we begin, let’s define the term short sale. What exactly is a short sale? A short sale is when a seller attempts to sell their home for less than they owe. The seller will then submit the offer to their lender. If the lender agrees to accept the negotiated offer, this is now considered a short sale. Before buying a short sale home in Florida, you will need to do enough due diligence to educate yourself on how a short sale works in an effort to determine if a short sale is right for you.
The Pros And Cons Of Buying A Short Sale
• A short sale will usually save you up to 10% below the current market value.
• A buyer has some disclosure protections on a short sale home. When you buy a foreclosure, the bank will not provide you with a home disclosure report. However, when you buy a short sale, you should receive a home disclosure report.
• A short sale is usually in better condition than a foreclosure. Most foreclosures have been sitting vacant for six months or quite possibly for years. A home that has been sitting vacant will generally require more repairs due to the home being neglected for long periods of time.
• A short sale can take from 30 days to six months or more to complete the entire process depending on the issues that are involved with all of the participating parties. Therefore, you will need to have the time and flexibility that is required when buying a short sale.
• Once your offer has been accepted by the seller, it will still have to be approved by the lender.
• Even if your offer was accepted, sometimes the seller may still be receiving other offers .
• If the seller didn’t make an agreement with the lender to forgive the balance, the buyer could receive a deficiency judgment from the lender after the closing.
• If the lender does forgive the balance, the buyer could still be liable for the property tax on the unpaid balance.
If you’re thinking about buying a short sale home in Florida, consider using a realtor that has experience in dealing with the short sale processes and one who knows what is required in order to buy a short sale. Otherwise, after many months of struggle, you may find yourself without the home you were trying to purchase. Now you have to start the process all over again.
Buying a short sale is not something you want to learn as you go. So talk with your realtor about the pros and cons of buying a short sale. He has years of experience and will be a valuable resource in helping you decide if buying a short sale is right for you.
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Author Millie Gil: I have been in the real estate service business in Florida for many successful years and will be here for many more. This longevity and confidence comes from my residential lending and real estate services to great buyers and sellers, and their recommendations to others that result in repeat and referral business that keeps me productive and successful.
Doing real estate relocation is also a passion, by assisting transferees with every residential or commercial real estate need. I know that “Relocations occur for business reasons, but more often they succeed because of a combination of family needs that are met”. My commitment to my clients is that I work diligently and quickly to produce results.
As a full service Broker-Owner of Bold Real Estate Group in Stuart Florida. I assist buyers, sellers, renters and investors in real estate transactions spanning all of the price ranges and property types. I am fluent in English and Spanish with a strong network of real estate professionals worldwide.