Are you looking to buy a Las Vegas short sale home? Are you thinking that now's a great time to find bargains? That's true, but it pays to know a little about the seller's situation before you make an offer. If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market. A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase. With Las Vegas and Nevada being number one in distressed properties, buyers will find that most listings are either REO (bank owned) properties or short sale listings. When selecting homes that fit your criteria, buyers should consider the status of these listings. For more detailed information about the entire short sale process, visit our website: www.shortsaleconsultantsofnevada.com. You're a good candidate for a short-sale purchase if: - You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
- Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
- You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.
- Your offer is fair and at market value. Lenders have a responsibility and goal of minimizing their losses in this distressed marketplace. If your offer is much lower than the current market value of the home, your offer will be rejected. In most situations, if your offer is too low, the lender will not issue a counter offer, but will merely reject your offer. Buyers must remember that the sellers' real estate broker will consider the decline in values when pricing the home. As your buyer's broker, we will research comparable sales, listings and values to determine a fair offer price, so that you are able to purchase the home you choose.
- Terms are acceptable to the lender and seller. If a lender approves the seller's short sale, the lender can require that the seller sign a promissory note to repay the deficient amount of the loan, or that the seller will complete the closing by bringing cash in to reduce the deficiency. To some sellers, this is not acceptable or possible. Buyers should be aware that in some situations, even a good offer will not guarantee that all parties agree to final terms.
For that reason, we suggest that our clients select more than one possible property when buying short sale homes; having another home as a possibility reduces the stress that goes along with buying short sale properties.
- No repairs or repair credits. You will probably be buying a short sale in "as is" condition. The seller usually has no cash available to make repairs; the lender is already taking a loss in the purchase, and is unlikely to agree to any repair credits. Your home inspection will tell us is repairs are serious and potentially costly, at which time you can cancel the purchase.
- Your schedule allows. Short sales require a longer approval process, as both seller and lenders must approve the terms of the purchase contract. In some cases, the approval process can take more than 30 days. After approval is the standard escrow period, during which the buyer's loan goes through underwriting, and all other escrow issues are addressed. Short sale closings generally face a longer escrow period, so if you have a deadline for your move, you need to consider that when making an offer on a short sale property.
Buying a short sale is a different transaction, in many ways, from the traditional purchase.
If you are seriously considering purchasing a Las Vegas short sale, it is important that you engage the services of a Las Vegas Broker with short sale experience and knowledge. As a Certified Distressed Property Expert, I have had extensive training in short sale negotiations and closings. No one can guarantee that a seller's lender will accept your short sale offer. We do guarantee that we will structure, package and negotiate your short sale offer to maximize acceptance of your offer and successful closing.
For more detailed information about short sales, contact us today for our FREE BUYERS SHORT SALE GUIDE; call 702-876-3553 or email terrilvp@cox.net
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