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How can I get a good deal while buying in a short sale?

On Behalf of | Apr 6, 2017 | Real Estate Transactions |

A prospective buyer is always looking for a good deal for buying a house. In this housing market, many Fort Lauderdale residents may find themselves considering buying a short sale house, as it often presents itself as a good deal. A short sale is where the house is for sale by owner at a rate lower than the amount owed. This usually happens when the house’s value has fallen. A short sale happens with the lender’s permission, as the lender is usually not getting all his money back.

While they may be cheaper, prospective buyers need to be careful of buying homes in short sales, as the renovations may end up costing more than they anticipated. This may be because the house sat empty for a long time and the house suffers from neglect-filth, mold and termites are common problems in such property. However, there is a solution as well-homeowners may not know that there are a couple of loan programs that they can avail if they want to renovate.

When the home inspection is taking place, buyers should go along and ask for estimates of how much repairs would cost. It might even be beneficial to ask specialized inspectors to look for termites or structural damage. When going through the house, make sure all legalities are completed-renovations have been improved by the relevant authorities as to avoid fines at a later time.

It is also important to keep in mind that real estate closings do not happen as quickly in a short sale. The seller’s lender has to approve of the price and banks are not quick to respond. It may help to have an experienced attorney by one’s side during real estate transactions to ensure the process goes as smoothly as possible and all legalities are met so buyers can begin their new lives in their new homes.