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No Contingencies on Sale Offers
This is a short post on a short subject of short sales.
There is lots of information out there on the web about short sales. How they take a lot longer to close, so short sales can take a LONG time.
I’ll keep this short and cover one short topic associated with Short sales, REO sales, and Foreclosures. Sometimes these “Bargains” aren’t. But bargain or not, here is one thing you should know. If you want an accepted offer don’t try and make one contingent on the sale of your home.
There are situations where you can get an accepted offer contingent on the sale of your property, but not these.
Be prepared to wait a long time for your offer to be considered, and even longer for it to close then longer yet before it is ready to live in.
You make some good points, thanks for sharing. There are some great opportunities out there for buyers in today’s market. In Charleston SC, I get calls daily from buyers interested in putting an offer in on a “short sale†or a “bank owned†property. As a “buyers agent” with experience in short sales & REO properties, I really explain the process a buyer and prepare them for a potentially drawn out and frustrating experience. They risk spending money on inspections etc….. then have the deal fall through at the last minute. If the buyers have the patience and the property really suits their needs then it might make sense to move forward. If the buyer needs to coordinate the closing of the short sale property with the closing of the sale of their current home they could be in for a bumpy ride. The short sale lender does not care if all your belongings are in moving truck and your dogs are in a kennel.
also
A “bank owned†or a “short sale†property does not automatically make it a “great dealâ€. After you do all of the repairs that may be needed etc…. what have you really gained? There could be a home listed just down the street with realistic sellers who have taken good care of their home that could just as good an opportunity. A buyer should find a “buyer’s agent†that will explore all the options!
With everyone talking about how we are in a buyer’s market it’s understandable how a buyer would think they could get a bank or lender to accept a contingency but that’s just not the case. They don’t realize it’s not a buyer’s market when you are negotiating with a bank or lender. They may be flexible on price and closing costs but that’s about it.