Everyone listens to the news, reads the papers, and hears the ads telling buyers that they can buy million dollar properties for as little as $100.00. Common sense tells us that there is little, if any, truth to this and that there might be one of those deals out there but it is like looking for the proverbial needle in a haystack.
Many buyers contact me telling me that they want to buy a short sale or a foreclosure with dollar signs in their eyes, commercials playing in their heads, and the desire to buy a home at a rock bottom price but after experiencing the reality of the short sale process they often come the realization that it is not all it is cracked up to be.
Many agents paint a rosy picture of the short sale property but are unaware of what is in store for both them and their clients. Short sales can be a good deal but the process often takes several months and the final price often ends up being the same as a property that is priced well to begin with. If you have the luxury of time, a place to live while you wait, and tons of patience, then a short sale property might be for you but know how deep the pool is before you dive in.
I try to educate my buyers about the short sale process before they even look at those properties and fall in love with one of them because often they will wait months only to find out that the short sale will not be approved by the bank or that the bank has decided to take another offer. Short sales are nearly always multiple offer situations and yours may be one among many so there are no guarantees. Even with an experienced short sale negotiator time and patience are necessities.
Many of my clients come to the realization that they are not willing to wait weeks or months just to find that they did not get the property and have to begin the search again. It can be very frustrating especially if you are trying to plan for other things like new schools for the kids, the logistics of moving, selling or renting an existing home, and family events.
If you are considering purchasing a short sale property know the pitfalls, understand the time involved in waiting, and gather a lifetime worth of patience