Short sales are known for their headaches and challenges, but they can still be beneficial for both the seller and buyer. The biggest point of concern in a short sale is understanding that you may end up stuck in the process at one point or another. While patience is required, there are also a few tricks to know to keep the process from becoming overwhelming.
The seller stands to gain the most benefit from a short sale. As a foreclosure alternative, the short sale process can save a lot of negative impact on your credit and future loan chances. However, the seller is also in one of the toughest positions in a short sale. It is important to remember that you are simply the mediator between the buyer and the bank. Since the bank holds all of the power of contract approval, it is in your best interest to secure the best offer possible the first time. Understand that the bank does not like to negotiate, nor do they want to accept a contract full of special terms and conditions. Stay patient and be strong in your negotiations with a potential buyer in order to maximize the chances that the bank accepts an offer quickly.
Buyers have a chance at a great deal on a home through purchasing a short sale. However, this often comes with additional time in the closing process and even some additional compromises. If you are buying a short sale present the most clean and condition-free offer possible. Banks are often more willing to accept an offer that is preapproved for financing, does not ask for closing cost assistance and may even be willing to purchase as is. Buying a short sale requires patience and compromise. Remember that most short sales are listed below market value to begin with, so don’t be surprised if you end up paying more than list price.