In theory, buying a short sale comes with many benefits, including the ability to save money. While there are definite advantages of buying a short sale when compared to a conventional sale, you need to realize that there is a lot that goes into the process.
Moving through a short sale purchase requires a high degree of knowledge, as well as plenty of patience. Anytime you are dealing with a bank, you never know what is going to happen.
Here are some top tips for negotiating the price of a short sale:
-- Realize that the bank is in charge, not the homeowner. Remember, the person who owns the home is not going to make anything on the deal. They are simply trying to get rid of the property as soon as possible, as doing so allows them to avoid foreclosure.
-- A low offer may not be accepted by the bank. Just because a seller and agent accept your offer doesn't mean the bank will do the same. For this reason, you don't want to get too greedy with your offer.
-- Time on the market is important. The longer a home has been on the market, the better chance there is that the lender will accept a lower offer.
If you are interested in buying a short sale, it is important to understand how the process works as well as what you can do from a negotiation standpoint to improve your chance of success. Knowing the ins and outs from start to finish will benefit you in many ways.
Source: Findwell, "How to Negotiate the Price of a Short Sale," accessed June 16, 2015