Home Buyers Experience Frustration With The Short Sale Process
If you are in the market to buy a home in Tallahassee, you must make a decision early-on whether or not you plan on experiencing the short sale process. As many have found out before you, the short sale process can be very frustrating.
In a traditional (normal) home purchase, the buyer makes an offer, the seller either accepts or counters the offer, and then the buyer must do the same. Eventually, if an agreement is reached, the buyer commences a due-diligence process and then proceeds to closing. This is the way things have been done for a very long time ... until the advent of the short sale process.
The abundance of short sales in Tallahassee (and everywhere else for that matter) has created a new way of doing things that can be very frustrating for prospective homebuyers. The addition of "another party" in the transaction means that a lot of what buyers expect to happen is going to be pushed aside and only preparation will make the short sale process tolerable.
Be Prepared For The Short Sale Process
The first thing you must do if you are going to buy a home through the short sale process is understand that the seller is only "along for the ride," and that ultimately, the bank is going to decide what price and terms for which the home will sell. Somebody who has decided to short sale a home has already decided that bringing money to closing is not an option, so the bank will make the decisions on what they feel is best for the bank.
In a normal sale, the seller is greatly concerned and invested in the sale. In a short sale, they have already conceded the decision to the bank, so the seller will sign most any offer that is brought. The bank will then do its own due diligence and determine a price it is willing to accept in order to avoid the foreclosure process. And this is the key to understanding the short sale process.
Contrary to what you might read elsewhere, you are not going to steal a home through a short sale. Sure, you can definitely buy a home below market through the short sale process, but why would the bank just "give the home away" if it thinks it can net more through a foreclosure? Understanding the true value of a home will help you know the magic price that is below market, but high enough to make the bank agree to the sale. Low balling a short sale is a futile effort that will not result in a sale.
Short Sale Process Is Flawed
There are so many flaws in the way that banks are handling short sales. Many, in a an effort to save money, are hiring low-priced appraisers from outside of the Tallahassee real estate market to tell them what the home is worth. The appraiser, who is doing numerous appraisals (think volume discount) and rarely does the market research that a local appraiser would do. Because of this, many short sales are killed because the bank is told the home is worth far more than the current market will allow, so the bank counters back to the buyer (through the seller) at a price that is not realistic.
This is the reason that many banks allow short sales to stick around for so long. We have seen some on the market for 3 years, even though buyers have made offers/contracts that could have sold these homes years ago. So what is a buyer to do?
First and foremost, make sure that you are willing to put up with a long-term short sale process that might have you make offers and contracts on more than one home. If you are in a hurry to occupy, then most likely the only short sale you can consider is one in which the bank has already performed an appraisal and has indicated an approved selling price.
You can achieve a below-market purchase if you have patience and just work through the short sale process. At times, you will feel like nobody cares (I promise you that your real estate agent cares), but it is just the nature of the beast. Banks are overwhelmed with homes in distress, and to them it is just a job that must be done. They will work through the short sale process at their own pace, so you should just decide whether or not that pace is right for you.
Joe Manausa Real Estate is a brokerage company headquartered in Tallahassee, Florida. Its unique business model provides specialists to both home sellers and home buyers, and the results speak for themselves. JMRE has significantly more 5-star reviews on google than any other local competitor. Joe Manausa Real Estate is a leader in internet marketing and utilizes search engine optimization, email marketing, social media and data analytics to get their clients’ home sold faster and for more money than any other Tallahassee brokerage firm. For more information, visit www.manausa.com or call us at (850) 366-8917.