1. Don't make lowball offers on a Rancho Cucamonga Short Sales. Lenders don't have time to play games. Typically Lenders follow guidelines and want to net at least 85% of the home's fair market value. Buyers educated to today's market know that lowball offers, asking for more than 3% in Buyer's Closing Cost will be rejected and in this multiple offer environment they may not have the opportunity to make a counteroffer.
2. That's why the Buyer's Agents experience is crucial. However, your Agent has to be knowledgeable enough to guide you in drafting a successful Short Sale offer strategy. But it's going to be equally crucial for you to follow their advice and not listen to Uncle Bob who use to sell real estate 5 years ago in a very different market environment or Late Night infomercials that use strategies from another market area.
3. The Listing Agent's experience is even more crucial. It's up to the Listing Agent to know how to submit a complete Short Sale package, along with your offer, to the Lender(s). If this isn't done in a timely, methodic way with the correct documents from the Seller then your offer has little chance of success no matter how well it is drafted. If the Listing Agent tells you that they have submitted all offers to the bank . . . move on!!! You're dealing with an inexperienced Agent that knows Nothing about Short Sales. This is what Short Sale Nightmares are made of. Let that be the Seller's problem - NOT YOURS! No matter how much you love the house move on. Chances of your deal closing are slim to none.
4. The Seller MUST qualify for Short Sale. A good Buyer's Agent will confirm with the Listing Agent that the Sellers qualify for the Short Sale. If the Sellers have filed Bankruptcy, has an unresponsive lender, private lender or has multiple Lenders the Short Sale has a good chance of being rejected. Have your Agent do their homework.
5. Most Rancho Cucamonga Short Sales are being sold AS-IS. However, the seller should provide a Property Transfer Disclosure Statement to you and will allow you to make inspections to satisfy yourself as to the physical condition of the property. Make sure your agent schedules a Home Inspection with an experienced Home Inspector. A Home Warranty is an excellent idea, but most Lenders will not pay for them so be prepared to pay for one yourself.
6. Don't submit offers without proof of funds, a loan approval and a strong Good Faith Deposit. You've got to show that you are a strong, qualified buyer to have your offer be seriously considered.
7. Be prepared to wait. Short Sale transactions typically take several months to close escrow. The Treasury Department released a 43-page document in November 2009 that outlined a proposal for streamlining Short Sales across the banking industry and is supposed to take effect April 5, 2010. But until those guidelines take effect, patience is going to be very important. If you have to be settled into a home in less than 60 days you may want to pass on Short Sales.
Now that you have more insight into what to expect, you don't have to shy away from trying to buy a house just because it's a Short Sale. Who knows - A Short Sale may be the most affordable housing opportunity for you and your family.
To better service our Buyers and Sellers, Our team has taken time to become Certified through a comprehensive NAR training program that has provided us with an even more specific understanding of the complex issues involved with Short Sales. That training combined with our extensive Short Sale experience makes us an invaluable resource in your pursuit of buying your home in this current market environment. We'd be pleased to work with you.
If you're not already working with an Experienced Agent, give us a call at (909) 476-9600!