When a homeowner can’t keep up with the mortgage payment or owes more than the property is worth, the bank might be willing to approve a short sale. In a short sale, the lender agrees to accept less than the balance of the loan to release the mortgage, potentially offering excellent deals to others looking to buy a house. However, before you get excited at the possibility of getting a new home at bargain prices, there are a few things you should know.

3 Things You Should Know About Buying a Short Sale

1. The Lender Has to Approve the Sale

Not only will the seller have to accept your offer, but they’ll also have to get approval from their lender. Unfortunately, this means that the sale may not go through, even if the seller is enthusiastic about the deal. The extra paperwork also causes significant delays, so a short sale may not be the best option if you’re looking to close soon.

2. The Price Should Be Near Market Value

Sellers might list a property at an unrealistically low price to get attention, but their lender likely won’t approve an offer that’s significantly below market value. To figure out how much to offer, ask your agent to find out how much the sellers owe, which lender holds the mortgage, and what similar properties are going for in the area.

3. Your Agent Needs Short Sale Experience

If you hope to buy a house in a short sale, having an experienced real estate agent is crucial. These transactions are more complex than the typical sale, with unexpected obstacles that can pop up anytime. An agent that has been through the process multiple times will know how to increase your odds of success, negotiate the best deal possible, and handle problems before they arise.

If you plan to buy a house in a short sale, RE/MAX First Choice agent JoAnn Meier has the expertise to take the stress out of the process. Since 1984, she’s been the most trusted agent in Waterloo, IL, and the surrounding area, offering first-class service to home buyers and sellers alike. Visit her online now to browse properties for sale, get more real estate tips on Facebook, or call (618) 939-6003 to start your home-buying adventure today.