Want to purchase a short sale?

When a seller owes more on their house than its value, they can sometimes get the lender to agree to a short sale, whereby the lender agrees to release the mortgage for a sum less than what's due. Should you have questions regarding real estate in  Delaware, contact me here or e-mail me.

Purchasing a short sale in Wilmington, Delaware on your own is risky. Contact ReMax Associates for expert advice.

Can I get a bargain on a short sale?

The short answer is "sometimes". Most people hear the term "short sale" and instinctively think of a seller that is in default and must sell their home fast to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to do well from another's misfortune. Alternatively, a lender may consider a short sale even if the seller is current, but property values have declined. In cases such as these the discounted price may in fact be closer to true market values, not below.

What's involved in buying a short sale?
  • Prior to making any purchase offers, do your homework. Using a knowledgeable real estate agent from Alliance Realty to assist you with researching a property can help you make knowledgeable decisions. We can help reveal to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Getting this information can help you make a decision about how much to offer.
  • Hire a REALTOR® with short sale knowledge. The real estate agents at Alliance Realty can aid you in expediting the transaction and make certain you're protected. Don't permit inexperience to hinder the closing process. Let our experience and knowledge work in your favor.

  • Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Know that many short sales will not close in the customary 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the discounted price. It's not uncommon that your offer will go before a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
  • Home warranties, buyer credits and allowances, and closing cost concessions are typically not negotiable when dealing with a short sale. The lender will be selling the property as seen which means the lender will not be paying for repairs. Make sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Alliance Realty, when we write an offer, we will be looking out for your interests first and foremost and will always advise you to make your offer contingent upon the results of the inspections.
When you're ready to buy, whether it be a short sale or a typical home sale, Alliance Realty can help. Apply our experience and knowledge of real estate to make sure that you are getting a fair deal and protect yourself during the full deal.