- Have patience. Short sales take time. The more flexible you are willing to be, the better your offer looks to the seller. It will usually take a minimum of 60 days to get a short sale approved, sometimes longer. As a CT short sale listing agent, I frequently recommend the most patient buyer over the highest paying buyer.
- Be ready to move quickly. This may sound like a contradiction to the previous point, but after all the waiting is done and the approval arrives, everyone will need to hustle. Short selling lenders don’t give long for the parties to close. 30 days from approval is expected. Being able to close quickly gives you an advantage.
- Have the most desirable method of financing. Cash is always king, but certain financing is preferable to others. Given two identical offers on a short sale – one with conventional financing and one with FHA, the conventional will trump almost every time especially when the condition of the property is questionable and the sellers lack the funds to make repairs. Level of pre-approval also weighs heavily here. The further you’ve gotten with your financing, the better your offer looks.
- Have the right buyer’s agent. When my short sellers receive multiple offers on their properties, I always measure the level of the buyer agents short sale expertise when making my recommendation. Its easy for me to tell with a few choice question whether your buyers agent is experienced in short sales. I will frequently also pull the mls statistics of your agent to see how many short sales they have been involved in. Why? Because I know this person will be advising you through the process. If they don’t know what they’re doing, I know the sale will likely fall apart at some point and I dont want my sellers to end up having to start all over. Choose your agent carefully if you plan to pursue buying short sales.
Last Updated on February 21, 2019 by Minna Reid