A short sale occurs when a bank agrees to allow a home’s current owner to sell the home for its current market value. In some cases, the home will be sold for less than what it is worth. Buyers may believe that purchasing a short sale property may allow them to acquire an asset for less than it is worth. However, there are some pitfalls that Pennsylvania residents and others should know about before inquiring about such a home.
There is a chance that a seller hasn’t been approved for a short sale despite the fact that his or her home is listed as one. There is also a chance that the home won’t be sold for less than it is worth. Generally speaking, lenders know how much a home is supposed to sell for. They are loathe to take less than a home is worth as doing so could result in larger losses.
Buyers should know that it can take more time to close on a property listed as a short sale. Furthermore, the home is generally sold as-is, which means that the buyer has to take it even if there are pest problems, a leaky roof or other issues. Finally, buyers should know that they will likely pay more in closing costs as lenders aren’t likely to offer concessions.
Those who are interested in purchasing a residential property may want to do so with the help of legal counsel. This may be especially true for individuals who are looking to purchase a home on the market as a short sale. An attorney may further explain the process of obtaining financing and closing on the transaction. Legal counsel might also work directly with the lender on a buyer’s behalf.