A buyer entering the market these days is encountering a type of sale that so many before them never even knew existed. It's called a Short Sale.
A short sale occurs when a sellers owes more on the mortgage payoff, than they will get for the sale of their home. The mortgage holder(s) must have time to review the purchase contract on the property and decide if they will accept the short payoff. Sometimes the owners are facing foreclosure after missing mortgage payments. Perhaps the owners are current on their mortgage, but are being relocated out of state, or out of the country. Maybe the owners are divorcing. Whatever the situation, the owners must sell and are facing that short pay off.
Should you be looking into purchasing a short sale? If you have an open ended time frame on your move, then a short sale is a definite possibility. If, however, you have have a definite date when you must be in your new home, you should probably skip this type of sale. Short sales are known for delays, and sometimes, don't even make it to closing.
There is also a misconception that you can get a great deal on a short sale. That you can pick one up well below market value. I am here to tell that the banks want market value as much as Mr. & Mrs. Seller next door. And in the current Northern Virginia market, there is no incentive for the banks to accept less than market value. Homes are selling quickly. There are only three to four months of inventory for buyers to choose from. It's not the same scenario that buyers were facing last year when there was one year or more of inventory on the market. The market is moving quickly, and it is to the sellers advantage.
Still not sure if you should be shopping for your home in the short sale listings? Let's talk about it.
Chris Ann Cleland, 703-402,0037, chrisann@lnf.com
Realtor, Licensed in Virginia
Short Sale Specialist, GRI
Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header is a combination of photos from the Bristow, Gainesville & Haymarket areas, taken by Chris Ann Cleland.
Hi Chris Ann: I have clients whose lease will expire on 8/15 and rollover to a month-to-month. We wrote an offer on a short sale yesterday, because they are good candidates for it. Not everybody can wait indefinitely. :)
Chris Ann -- good post --- sounds like your market is really good. I'm very pleased for you. Ours is picking up, but definitely has a way to go yet to get back to where we were. I'm very optimistic, though.
Elizabeth: Anyone who is willing to do a month to month rental is a great candidate. Someone who is not, should look to bank owned homes and regular sales.
Liz: I was shocked at the market reports today. 3 and 4 months of inventory? Love it! This is what will stabliize our market.
Hi Chris Ann-I do know what one is now but only recently found that info out. Great post and I love the pic of the wreath on the door. <SMILE>
Sharon: I like that photo too. From Old Town Warrenton, VA.
Not everyone will wait to see a short sale through. Those that do often find themselves with a wonderful house at a great price.
Pat: More and more are working out. Just got another of my Haymarket Short Sales approved this week.
Chris - Great blog regarding short sales. I suggested and reblogged it. You deserve a feature for this one.
Excellent summary of the high points of a short sale. The title is great because that's exactly what end consumers are asking. The term "short" is confusing.
Garrigus: Thanks. This is an older post, but still so relevant. Thanks for the reblog.
Dave: I tend to answer questions that I get asked a lot in my business. They usually make great posts.