What You Need To Know Before Buying Atlanta Short Sales

Posted by on Wednesday, February 9th, 2011 at 4:46pm.

When searching for Atlanta real estate online you'll notice a few properties listed as short sales. These properties are a little different than a normal home and it takes an experienced real estate agent to ensure you get to closing as they are subject to a bank (third party) approval. The short sale process can be long and grueling so be prepared to get dirty! Here are 5 things you need to know before buying Atlanta short sales:

The Listing Price Doesn't Tell The Whole Story

If short sales are so difficult, why do so many people want to buy them? The answer is listing price. Short sales are normally listed below true market value causing quite a ruckus with home buyers. It's typical for a buyer to see a short sale priced lower than comparative properties and the excitement overwhelms them. They figure the listing price is where the home will sell, but not so fast Charlie!

It's well known in the real estate industry that short sales are originally priced below market value to entice buyers into a bidding war. This tactic ensures the sellers receive enough offers to choose the one with the best chance of making it to closing. Don't be fooled when looking at short sales. Banks (third parties) have the final say in what price they are will accept. Just like your mom warned you when you were younger, it if looks to good to be true it probably is. This brings me to my next point.

If You Want To Win The Bid Do A Market Analysis

Most short sales receive multiple offers and it takes a through understanding of the market to get your offer accepted. You need to understand what the true market value of the property is if you plan on winning the bidding war for that perfect home. You need the expertise of an experienced agent to help you determine what comparable properties are currently selling for.

Before writing an offer make sure to have your agent do a through analysis of the property. Check to see how much the homeowner owes on the property, determine if the listing price is to low, and get to know the neighborhood. If you don't want to lose out on the home, be sure to offer close to market value, otherwise the bank won't give you a second glance!

Time Is Of The Essence So I Hope You Have A Lot Of It!

Short sales take a long time from start to finish. The average time-frame for a short sale to closing is between 3-6 months! Banks are the thorn in our sides as real estate agents due to their silly rules when it comes to approving a short sale offer. They take their sweet sweet time and there's almost nothing you can do about it. Calling them everyday does nothing but upset the asset managers so don't be pesky, it will only draw out the process.

When buying a short sale be prepared to wait. Banks are currently overwhelmed with record numbers of defaulted loans, foreclosure proceedings, loan modifications, and short sale requests while being woefully understaffed. The banks have created many different divisions to handle these tasks making it difficult to talk to a customer service rep who knows the whole story. We all know banks aren't in the business of helping the consumer these days so take a deep breathe and find a seat.

If you have the patience and a great real estate agent like Tina (hint-hint!) short sales can be just the thing you're looking for. But, be ready fight multiple bidders, do your homework on comparable properties, and be patient! Short sales can be a great way to gain instant equity but only if you're ready to play the game. Good luck!

Lisa Udy is the broker/owner of Platinum Real Estate Group and has been helping buyers since 2001.

14 Responses to "What You Need To Know Before Buying Atlanta Short Sales"

Dubai Property wrote: Really nice article and I am also of the same opinion especially thorough market analysis before winning a bid is utmost necessary. Same rules and regulations apply in Gulf property business.

Posted on Monday, February 14th, 2011 at 8:26am.

Pensacola Real Estate wrote: This article covers all the highs and lows of shorts sales in a wonderfully concise way. Here in Florida only one if four make it to closing because the buyer gets tired of waiting, or because what looks like a better deal comes along.

Posted on Monday, February 14th, 2011 at 10:19pm.

Toby Lane wrote: Great article Lisa. Most buyers don't have a clue what they are getting themselves into with a short-sale. I'm glad you mentioned the 3-6 month time frame because that often is a realistic waiting period to hear from the bank and close the loan. It is so important to hire a Realtor that understands short-sales, like yourself and all of agents at Tina Fountain Realtors.

Posted on Wednesday, February 16th, 2011 at 6:36am.

Jeff Buettner- Scottsdale Shortsale wrote: As handling many Short Sales I couldn't agree more with your article. This type of information can help buyers tremendously! As the Phoenix area is hit hard buy the housing market, this information is very useful!

Posted on Wednesday, February 16th, 2011 at 8:26pm.

Patsy Snyder wrote: Short sales are not for everyone. One has to be able to wait and wait. Closing date must not be important to the buyer.

Posted on Sunday, February 20th, 2011 at 10:47am.

Zack wrote: Short sales can be great buys, but it's important to learn all you can. Research the homes, the deal with their lenders and don't be in a rush. There are great deals out there right now.

Posted on Sunday, February 20th, 2011 at 10:47am.

Jane Sanders wrote: There are actually a lot of advantages with Short Sales but the problem is one needs to know the disadvantages in order to fully appreciate and enjoy its benefits.. great article you have here -- you have basically hit the important marks..

Posted on Sunday, February 20th, 2011 at 10:47am.

Nicole Arsenault wrote: Short Sales are getting so much publicity that more and more buyers are interested in them because they are looking for a deal. ANd so many do not want to hear that it can be a very long, stressful and disappointing process. Thankfully in my area, we were not inundated by a lot of potential foreclosures, so the opportunity for Short Sales is a little less than in other areas of the country. Good article, educating buyers is the best way to pre-set their expectations...

Posted on Monday, February 21st, 2011 at 10:11pm.

Joe McDermott wrote: Buyer should consider looking for Wachovia short sales. They only take 7-14 days to approve the deal. Very quick.

Posted on Monday, February 28th, 2011 at 4:38pm.

Shawn (House Sales) wrote: This is a great article. Yeah, short sale can really be a long wait. Patience is always a virtue when it comes to short sales and to quote, "be ready to fight multiple bidders", this is also like a game.

Posted on Saturday, March 5th, 2011 at 9:18am.

Salt Lake Homes wrote: When indulging for short sale property. it is necessary to wait for that property to be approved by bank and as far as rules and regulations are concerned. This will somehow help home buyers knowing the essence of short sales not only in our area but also yours.

Posted on Saturday, March 5th, 2011 at 9:18am.

Daniel Jackson wrote: Short sales are really too good to be true so one has to really fight for it. And it is vital to have the right agent to handle these kind of things like Tina or else you're on or a tough and cruel ride.

Posted on Wednesday, March 9th, 2011 at 10:52pm.

Scott Realty Team wrote: Interesting article. Short sales are not for everybody, so you definitely have to do your homework.

Posted on Thursday, March 17th, 2011 at 11:12am.

Rich Cederberg wrote: Short sales aren't for everyone, but for those who can wait they can be a good deal. Choosing an experienced short sale agent will have a major impact on how successful a short sale is and how long it takes.

Posted on Tuesday, March 22nd, 2011 at 2:04pm.

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