Tucson Short Sales
When it comes to Tucson short sales, here is the truth, simple and plain, cut and dry. You can find yourself a marvelous Tucson home, in all price ranges, because ALL types of homes have been affected by the terrible economy. You can look on the market today, and there are plenty of short sales available on the Tucson MLS. You can get yourself a steal ($200,000 less than what it was 2-3 years ago), but it comes with a price. Nothing good comes easy, and when it comes to short sales, you have to put in your time and hold onto the last strands of your patience. Since our economy is this way today, if you’ve got the time and the perseverance, you can come out as the victor when the economy goes back up. Saving $200,000 in exchange for up to 6 months of time, it makes great sense if you’re in a position to complete that transaction.
Short sales weren’t too popular during the boom so you might not know what it is. A short sale is when a bank agrees to discount the loan balance for a seller who owes more on his mortgage than the home is worth at the moment. On the market today, nationwide, almost 14% of homeowners are underwater, owing more than their home is worth. Sad, surely it is, but life isn’t fair. It’s time to take advantage of what’s before you! The process of closing is just a bit more sticky since now you have to get your offer approved with the seller, the seller’s agent, and the property’s bank (mortgage carrier).
Short sales don’t have to be fixer uppers like foreclosures. You most likely won’t deal with the nightmares that you may hear about with run down properties that need a lot of attention and repair. It’s most likely that the homeowners living in these properties are current with their payments, and now that the mortgage is worth more than the property, they just want a way out.
I have 7 tips that you need to follow when dealing with Tucson Short Sales. Click to read the 7 tips >>>
1. Know what you’re getting into. Short sales take time since you have three hoops to jump through, and with the banks being bombarded with foreclosures and short sales, you’re dealing with an uphill battle. If time is something that’s important to you with a home purchase, you might want to reconsider buying a short sale property. You need to give yourself a good 6 months of leeway, and have funds to deal with renting enough months to successfully close.
2. Find the right professional Tucson Realtor. Short sales are a different animal than normal home purchases, and the paperwork involved is totally different and extensive. The TRE Daily team is experienced and successful with dealing and closing short sale properties. You want a professional who has closed more than 3 short sales, so if you meet a beginner, don’t take the chance!
3. Bypass the complex short sales. When it comes to short sales, you don’t want to compete with another buyer for a property or deal with a property that has more than one lien. If there are multiple lenders involved, you would have to get your offer approved by every party, so you might be looking into more than 6 months for the closing if that’s the case. And if the short sale already has an offer on it? Let it go, since your offer won’t be checked out until the previous offer has been pulled or denied. Save yourself the trouble and find the gem of your own.
4. Offer the right price. Banks are definitely hurting in this economy, but don’t think that they’re in a position to give you a “pennies-on-the-dollar” steal. They know that they’re going to lose money on short sale properties, but they will not accept insulting lowball offers. You need to find out the property’s fair market value and search the comparable sales in the area, and send in an offer that makes sense for all parties involved. The best practice is to shoot 10-15% under its fair market value, along with considering the direction of the market. Also, you need to be pre-approved. Entering the market for short sales without being improved is like going to a gun fight with a knife. Nothing good will happen.
5. Look out for YOU. Work out this offer to your advantage. See if the lender will pick up all closing costs with the short sale. Also, within your offer, say that you will not do an appraisal or an inspection until your offer is approved. You don’t want to be shelling out hundreds of dollars on those things when you buying that property isn’t even for sure. And with deposits, don’t put too much down, since short sales take a long while and you might find other properties along the way, or the current short sale you’re involved in takes way too much time.
6. Make some noise. Short sales are a game where you need to be tended to, so make some noise! After your offer is submitted, you want to try your best to be heard. Banks have thousands of offers from short sales and foreclosures on their hands, and the only way to get attention is to get their ear. Have your agent contact the bank at least once a week, and when the time comes where you can’t wait no more, you have to let them know that you’re going to pull out if your offer is not addressed. Only the babies who cry get the milk, and the same practice fits the bill with short sales.
7. Stay on top of the market. You’re going to see counteroffers, and you’re going to see the market move. When you receive a counteroffer from the bank, it’s not an end-all, be-all type of thing. You don’t HAVE to take it, you can always counteroffer as long as it makes sense. Where has the market gone since your offer? How does the market value of the property look now? What were the comparable sales of the neighboring properties? After some more research, crafting a new offer is a piece of cake.
Tucson short sales. It’s a headache, but a headache that has incredible payoffs. Nothing good comes easy, and in the case of short sales, that is exactly the case. If you’re wanting to know more about short sales and would like to talk to a Tucson real estate professional, give the TRE Daily team a call at (520) 302-5312.
Leave a Reply