It’s no secret that parts of the Austin real estate market  is currently in a buyer’s market.  So what does that mean to Austin real estate home buyers?  It might mean a deal!  And deals come in all shapes and sizes – including short sales.  Depending on who you talk to, short sale home purchases can either be a blessing or a curse.  Here are 5 simple tips to make sure your next Austin short sale purchase lands you the deal of the century!   

First, what is a short sale?  If a home owner can prove a financial hardship, is behind on payments and owes more than the house is worth, he can ask the bank to approve a short sale.  A financial hardship is defined as the death of a wage earning spouse, catastrophic  illness, loss of a job or something similar.  Banks do not want to foreclose because they do not want to own real estate.  They also know that a person trying to get a short sale is more likely to keep the property in decent shape than someone who is foreclosed on.  A bank will take a bit of a financial hit on the sale just to move the property, meaning a buyer could be in for a great deal.

Patience is the name of the short sale game.  Let’s face it, there’s nothing “short” about a short sale.  Buyers looking to take advantage of Austin real estate short sales have a long wait ahead of them.  On average, purchasing Austin short sale homes for sale can take up to four months before you receive an approval letter from the seller’s lender(s).  And the process can feel like you’re trying to run a marathon on a treadmill.  We understand the short sale timeline and will keep you focused on the end goal, ensuring you are provided timely updates and know exactly where your offer is in the process. 

Do your Research.  Austin real estate area buyers who successfully snag fantastic deals on short sale homes are prepared for the extra work short sales require.  Buyers should remember that the listing price is set by the listing real estate agent and seller – not the bank.  Lenders understand that the amount owed on a home does not always reflect the value of the home in today’s market.  Our Austin real estate agents take the time to develop a strategy to achieve short sale approvals efficiently and effectively!

Realistic offers will be successful offers.  Short sales can offer amazing value.  But it is important to remember that realistic, thoughtful offers will obtain approvals much quicker than low-ball offers.  Unrealistic purchase prices will often experience either slow response or no response at all.  And Lenders have an extensive process to determine a fair value for the house and are not afraid to counter offers.  We have the market data and knowledge to ensure our buyers get a fair deal at significantly lower prices for all of our Austin homes short sale purchases.

Use an Austin real estate area REALTOR with experience.  A good REALTOR is worth their weight in gold, especially when it comes to short sales.  We know the right questions to ask and where to find answers.  Lenders receive a multitude of short sale offers each day.  A good REALTOR has the tools and knowledge to make sure your offer is processed quickly and doesn’t get forgotten on someone’s desk.  We also help our buyers negotiate terms of the contract with the lender, ensuring that you don’t leave money on the table – Meaning more money in your pocket after closing on that perfect Austin home.   

Be prepared for the short sale process.  Have a pre-approval letter in hand when you submit your offer for Austin homes for sale.  Lenders will require the letter before they will even consider your offer.  Also, short sale homes have often experienced neglect or have been vacant for a significant period of time.  Make sure you have enough cash set aside to cover unexpected repairs.  And finally, be prepared to close in a hurry.  Once lenders issue an approval letter they may expect you to close in as little as two weeks.  We help all our buyers prepare for their Austin real estate area short sale purchase and will ensure you are fully equipped for a great purchase experience!

And remember, you’re not alone in navigating your Austin short sale home purchase.  If you want to take advantage of today’s great home bargains, Contact Sam and he will ensure your next home purchase is not only fun and stress-free, but leaves you feeling like a savvy real estate investor too!

Guest post content by Heather Lanoue of the Colorado Springs homes team.

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