My buddy Liz Householder wrote this... this is a "re-blog" of Liz's post.
Liz wrote this about "Connecticut" the state where she lives and sells real estate and blogs...
It's pretty similar in many ways to "Buying a Short Sale Property" in Central Ohio but I am no expert... :- ) The issued Liz writes about in her fourth paragraph, "If the buyer has an inspection and doesn't want to fix the problems that crop up, the contracts in Connecticut allow the buyer to walk away." are dealt with in the contract we use here. The Columbus Board of Realtors contract.
These days, more and more homes are coming on the MLS as a "short sale". What does that mean? It means the price the house is being offered at is less than what the owner owes his lender, thus it's short of the debt on the house.
A couple of things are different about short sales. For one, the bank or mortgage company has to agree to the price before the contract is considered accepted. This can take a long time, as in months, or it can be done fairly quickly. It depends on the lender and how fast they will respond to an offer.
Houses in a short sale are usually offered in "as is" condition. That means that if there are any problems that show up during the inspection, the buyer will have to fix them because the seller is already out of money and isn't going to agree to put any more money into the house in a short sale. These houses are usually priced accordingly, at a lower-than-expected price in order to sell as quickly as possible.
If the buyer has an inspection and doesn't want to fix the problems that crop up, the contracts in Connecticut allow the buyer to walk away. However, they must make that decision in a timely manner - usually within the confines of the standard inspection clause: Ten days after acceptance of the offer to have an inspection, and five days to respond to the results. Buyers can't expect the seller and the lender to allow an open-ended refusal period that allows the buyer to change his mind a week before closing and walk away.
If you understand - and accept - the rules of a short sale, including the possibility that you may have to wait longer than usual for an answer to the offer, and for a closing date, then short sales can be a great way to acquire a home at a reduced price. In the end, you could walk away when you sell the house with a nice profit in your pocket, and in the meantime be able to live in a house that is ultimately worth more than you could have afforded if it wasn't a distress sale.
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This post provided by Maureen McCabe of Real Living HER
Contact 614.388.8249
Website: MaureenMcCabe.com
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Information is deemed to be accurate but should be verified to your satisfaction. Information provided herein is supplied by several sources and is subject to change without notice. Opinions expressed are solely those of Maureen McCabe.
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1 Comments on Buying a Short Sale Property removed because it was SPAM from another R E agent. AR members this is a Re-Blogged post, Re-Blog it to your AR blog if you want to speak to consumers about the topic.