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Buyers — Long Island Short Sales

Buyers

The basics of a short sale purchase:


1. A short sale is where a homeowner is attempting to sell their home for less than what is owed on the mortgage.  A short sale occurs when the value of the property (what the buying market will pay for it) is lower than what a homeowner owes on the property and the homeowner, for whatever personal reasons, cannot meet their financial obligations to pay the mortgage.

2. Short sales are not short.  They generally take a long time to negotiate mainly because the lender must approve the purchase and terms.  Because banks are not in the business of owning or selling real estate, they are not equipped to expedite negotiations in a timely manner.  However, many people mistakenly think and accept “the fact” that it’s going to take a long time. This is only so because many agents in the industry are not effectively working with partners in the business to get their offers to the banks. Aggression is the key to getting your offer, at the very least, in front of someone at the bank who can provide a response to your offer.

3. Buyers must have a conditional approval from their mortgage lender.  If a buyer is paying cash, the lender will want to see proof of funds. 

4. A qualified and experienced real estate agent and attorney should be sought to negotiate a short sale on behalf of the buyer. 

5. The seller must be “on the ball” and have a qualified attorney handling their short sale negotiations.

6. The best part of a short sale, for the buyer of course, is the opportunity to purchase a home at a good price.  With a short sale, you are most likely going to be purchasing the home at or around market value.  Do not expect to pay for pennies on the dollar for a short sale.  Banks negotiate hard and they simply will not accept “low ball” offers.  However, a qualified buyer, with an agent who knows the business and the market, can identify certain properties that have been on the market a very long time and this can present greater opportunity to purchase a short sale at 5 to 10 percent below market value. 

There are a number of items to evaluate when looking at short sales.  I know the in’s and out’s of the short sale process and I can save a qualified buyer, time and money, simply by implementing some common sense strategies that only a professional real estate salesperson like myself are aware of.   Call me if you are serious about purchasing a short sale. 

My phone number is 631.831.9048.