When Buying a Short Sale, Consider These Factors

With the real estate market brimming with investment opportunities, it is only right homebuyers go out and find out for themselves which of these properties are worth their hard earned money. To no one’s surprise, many are looking into short sale homes for their more affordable prices.

But the question is: can anyone buy a short sale property?

Well, to be able to answer this question, you need to consider these factors:

1.       Resources – before you even think about looking at listings, you need to really look hard at your finances. Find out how much you can truly afford and always consider the worst case scenario, especially if you are planning on refinancing the home. Speaking of which, secure a pre-approval loan letter from a lender. This document will not only show you how much your budget is, but it can also establish your credibility as a buyer.

2.       Knowledge of the Process – a short sale is not as straightforward as a typical home sale, so you need to brush up on the process. Better yet, hire a short sale Realtor who probably knows the ins and outs of the business and has the experience which will surely come in handy during tough situations.

3.       Knowledge of the Short Sale Home – it does not mean because the home is in short sale it is automatically a good investment. You still need to do your homework and check the investment potential of the property. You might also want to first confirm its status to be sure it is still being sold via short sale.

Lastly, you need to prepare yourself for the short sale journey ahead of you. Prepare yourself not only financially but mentally and emotionally. There will be challenging moments as short sales are known to become quite complicated.