Short Sales 101: Pros and Cons of Buying a Home at a Steal

If you're in the market for a new home, you may have come across the term "short sale." So, what exactly is a short sale? A short sale is when a homeowner sells their home for less than the amount they owe on their mortgage. The sale is "short" because the proceeds from the sale won't cover the full amount of the outstanding mortgage.

Now, let's talk about the pros and cons of buying a short sale:

Pros:

1. Potential for a great deal: Since the homeowner is looking to sell their home for less than the amount owed on the mortgage, you may be able to snag a great deal on the property.
2. Opportunity for customization: Short sales often require a longer closing period, which can give you more time to plan and budget for any repairs or renovations you want to make.
3. Motivated seller: The homeowner is likely motivated to sell the property quickly, so you may have more room for negotiation.

Cons:

1. Lengthy process: Short sales can take longer to close than traditional home sales because there are additional steps involved. For example, the bank or mortgage lender must approve the sale.
2. As-is sale: Since the homeowner is selling the property for less than the amount owed on the mortgage, they may not have the funds to make repairs or renovations. This means you may be purchasing the property "as-is."
3. Potential for a higher risk: Since the homeowner is in financial distress, there may be liens or other issues with the property that you'll need to navigate.

In conclusion, buying a short sale can be a great way to snag a deal on a property, but it's important to do your due diligence and understand the potential risks involved. 

Interested in pursuing a short sale? Contact us and we can guide you through the process!