In many cases, a short sale is the very best option for those on both sides of the fence. For buyers, considering a short sale may be the only way they can acquire the kind of home they want. The option is not for everyone, although there are some benefits to short sale purchases such as the price point and the opportunity of getting the home you want.
As with all real estate transactions, there several things to consider before you agree to purchase a short sale. Doing so will help you avoid some of the pitfalls associated with this type of transaction while ensuring the purchase is a good fit for your family. Here are some things for you to think about.
Short sale purchases in California and elsewhere can take a long time. Once you and the seller have come to an agreement, the sale must still be approved by the seller's lenders.
You must also think about your financing. If you can pay cash, it is likely a non-issue. If not, make sure you are well-qualified. Having a large deposit and preapproval will work in your favor.
Make sure you are prepared if the short sale should fall through. An attorney can advise you about some of the factors that could result in a rejection.
Consider your own needs before making an offer. For example, if you need to move into a new home on a deadline, a short sale might not be your best option.
The best way to determine if a short sale home purchase is right for you is to speak with a California real estate attorney. Consulting with an attorney can shed light on any additional issues that might indicate that a short sale is not right for you.
Source: National Association of Realtors, "Before Making a Short Sale Offer," accessed Jan. 21, 2016