Short sales are different from regular home sales. Prior to looking at or purchasing a short sale, it is critical that you understand what they are and what the process includes. This article contains some important facts on purchasing Southern NH short sale homes.
What Makes a Home a Short Sale
Short sales refer to homes where the amount of money expected from the sale will not cover the balance on the loan, and the property owner has no other assets to make up for the shortage. Costs involved in the sale can include the loans on the home, real estate fees, closing fees, and other related costs. The bank on the home would be "short" what is due/owed to them, which is where the phrase short sale was derived. The lenders currently holding the liens on the property must all authorize the sale in order for it to go through. This is how it can get complicated. Lenders will not issue approval until there is an actual accepted offer. Homes listed as short sales can only be purchased if this approval is actually obtained, and there are no guarantees that it will be.
Benefits of Short Sales
The amount of short sale inventory on the market has a lot to do with economy. At certain times, there may be an abundance of inventory. Short sale properties are frequently a chance for potential buyers to get a reduced price on homes. However, they may not match the requirements of all prospective buyers.
Disadvantages of Short Sales
Short Sale Time Frames
Potential buyers must make an offer to purchase without any indication that the sale will be allowed. It can also take a lengthy amount of time to receive any response on the approval status (typically many months or even up to a year). Therefore, short sales may not be good alternatives for people who need to close in a short period of time.
Condition of Short Sales
Short sales may often need more repairs than regular sales. They are traditionally sold without any concessions for problems since the owner is not able to complete any work and the banks are already taking a loss. Home buyers must be able to complete work with their own money.
Purchasing Southern NH Short Sale Homes
Short sale listings do not fit everyone. People must understand the advantages and disadvantages before viewing or placing an offer on them. For buyers with time to spare and the ability to complete renovations, it may be a great way to save money on a home. Consult with your buyer agent for additional facts on purchasing Southern NH short sale homes in your area.