Short sale properties can be a great source of income for investors, and a great deal for home buyers.
It’s important to keep in mind that a short sale is one where the bank has approved a loss on a current loan. They’re losing money, so they want to unload.
Generally the current owner is in a rough time, or wouldn’t be facing the loss of the property. Difficult times mean tremendous amounts of stress and emotional turmoil.
How To Bid On A Short Sale Property – Managing Relationships Is Always Key To Any Negotiation
For the bank, a short sale is an unemotional transaction. But for a homeowner that may be letting go of a property with great emotional significance.
How to bid on a short sale property is that you’ll have to take different approaches with every party on the transaction to get the best result.
Data is on your side. Look up comps to get an accurate evaluation of the market in order to seek out justifications for your offer prior to submitting a written bid. In a short sale, you have to get agreement from the owner and the bank(s) involved on the purchase price and the terms.
Getting written permission from the owner to discuss terms with the bank can be really helpful, but check with a good lawyer to make sure you have the right documents before you ask the seller to sign anything that might violate Texas 77092 law.
Your relationship skills are super important during this process. The bank will often require days, even weeks, to respond to offers and move forward. Often they request additional BPOs (Broker Price Opinions) or modify appraisals, and they sometimes like to involve different negotiators.
It can be intensely frustrating, so prepare yourself and don’t stress.
Get fully approved for any loan you plan to take long before you make an offer. Make sure your lender can close at the drop of a hat, because once the approval comes for the short sale transaction you need to be ready for escrow.
We secure properties via short sale, and we work with many investors and buyers who are looking for great deals on properties in the Houston area.
Give us a call (713) 635-9000 or get in touch anytime to find out how we can help you!