If you’re looking to buy a home that’s affordable in a highly desirable neighborhood, a short sale may be the answer you’re looking for. Unlike a traditional home sale, this occurs when an owner sells their house for less than the mortgage they owe on it, typically after a drop in property value or a low appraisal. A short sale is an attractive option to new homebuyers, as you can generally get a better deal. However, it still comes with a unique set of challenges. The expert real estate agents at Lawrence Realty Inc. share the key points to know about purchasing a home via short sale.
What to Know When You Buy a Home With a Short Sale
Short sales are less expensive than the market average; however, this is not without stipulation. The give-back is often additional closing costs and other out-of-pocket expenses. Keep in mind, too, that since short sale homes are offered as-is, you could be looking at some potential upgrades if the house requires immediate repairs.
A short sale doesn’t typically leave room for negotiation. Since the price is negotiated between the seller and the lender, you will generally agree to purchase the home in its current state.
How to Purchase
To buy a home in a short sale, work with a professional real estate agent who has applicable experience in this particular type of sale. It is also critical to undergo a home inspection before purchasing so you can determine exactly what you are committing to before signing on the dotted line.
The Closing Process
Closing in a short sale can be a drawn-out process, as you’ll have to wait to find out if you’re approved to purchase. In the meantime, save as much money as you can and plan for any renovations or home updates you’ll need.
If you’re looking to buy a home through a short sale, put your trust in Lawrence Realty Inc. With nearly 70 years of experience serving Red Wing, MN, and the surrounding areas, the family-owned and -operated company is dedicated to helping clients with their property needs. Call (651) 388-4745 to speak with a seasoned real estate agent, or visit their website to view their available listings.