Bidding on a short sale property can be a great source of income for investors, and an excellent deal for home buyers.
What Is a Short Sale?
A short sale is a type of agreement between the bank and current owner. The bank agrees to not demand any losses on their original loan. In exchange for transferring ownership back to them, all debts are paid off with the proceeds from selling your property at an agreed-upon price. This process can be difficult but may provide relief during tough times or if they would otherwise lose their home due to foreclosure.
Key to Negotiation: Managing Relationships
For the bank, a short sale is an unemotional transaction. An owner may be letting go of a property with great emotional significance. You’ll have to take different approaches with every party to get the best result without compromising your own professionalism.
Data is on your side. As a professional, you should look up comps to get an accurate picture of the market. Always seek out justifications for your offer before bidding on a short sale property. In short sales, it’s important that you consult with all involved parties about purchase prices and terms in order to ensure success.
The best practice before bidding on a short sale property is to get written permission from the owner. That way, you can be sure that anything they sign won’t violate Florida law. Your relationship skills are the most important thing during this process. The bank will often require days, even weeks to respond to offers and move forward. Often they request additional BPOs (Broker Price Opinions) or modify appraisals, and sometimes banks will involve different negotiators who can help close the deal quicker.
How We Can Help
Get fully approved for any loan you plan to take long before your start bidding on a short sale property. Ensure they can close immediately, because once the approval comes back, you need to be ready with escrow.
Florida Property Warehouse is here to help you! Whether it’s a short sale or an investment property, we’ve got your back. We make sure that the properties are in great condition and ready for new buyers with our comprehensive service offerings. Give us a call today so that one of our agents can walk you through how they could work on finding perfect deals just for you.