Did you know that short sales, like foreclosures, allow you to get a house for less? These are some of the best tricks to get approval and earn profits.
Get an Experienced Agent
An agent will play a big role on short sales. It is highly recommended that you get an experienced agent especially if the house is in a hot market. There are many cases that the proposal gets disapproved because the agent fails to do his part making the seller cancel. If you can, get an agent who was involved in several successful short sales. It is also advised to have a lawyer since some banks prefer to deal with them because a it is a legal matter.
Be Nice to the Seller
The seller is in control of the sale even if an approval from the bank is required. After all, you cannot start dealing with a bank without the seller's approval. Be sure to be courteous to the seller.
No Unreasonable Offers Please
While short sales are known to allow buyers to get a house for a lower price, it is discouraged to make an unreasonably low offer. Understand that the seller needs to sell the house for a price that can cover his balance. Remember that it is done to avoid foreclosure and further financial problems.
In addition, the bank's interests need to be considered. They need to sell the house to avoid further loss in case of a foreclosure. This is why your offer needs to be favorable to both the seller and the bank.
Before, an offer that's 20 percent off the actual market value is usually accepted. However, five to 10 percent will usually give you a higher chance for approval.
Show Commitment
There have been many cases of buyers making an offer and cancelling after a month or two. This is why sellers and their agents have become more diligent. When dealing with one, be sure to show and prove commitment. If you can, write a commitment letter indicating your promise that you will not look for other options or make an offer while waiting for the bank's approval.
Prove You Are Serious
Buyers need to show they are serious. A deposit that is equal to 1 to 3 percent is enough to show your sincerity. Don't worry because it will count as part of the downpayment. Plus, you can put it in a trust account for your safety. Doing so will give sellers a peace of mind that their buyers will not back out any time.
Don't Ask for Repairs ฝากขายที่ดิน
Note that buying short sale homes means you are buying the house as it is. Any improvements, pest control, inspection and repairs are on you.
While you can ask for repairs or at least a report of inspection from sellers on a regular sale, you cannot do this on short sales. Remember that the seller is already going through financial hardships. Adding a burden may make them ignore you. In addition, inspections and repairs will affect the HUD-1.
Flip the House
You can make a large profit by flipping the house. Flipping means improving the house by renovating, adding something, landscaping or renovating.
Short sales are a great opportunity for real estate investors. You can get a property for a lower price. If you can flip it, its value may increase giving you a large profit margin.
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