Investors and home buyers can benefit greatly from short-sale properties.
An important thing to keep in mind is that a short sale occurs when the bank says it will accept a loss on the current loan. The bank is losing money, so it wants to get rid of the property.
In general, the current owner is having a difficult time, otherwise, the property would not be lost. These times bring a lot of stress and emotional turmoil.
How to Bid On a Short Sale Property Savannah
Every negotiation begins with managing relationships.
Banks view short sales as a transaction that is unemotional. When an owner sells a property that holds great emotional significance, it may be difficult for them to let go.
Getting the best outcome from a short sale transaction will require you to take a different approach with every party involved.
Data is on your side. Before submitting a written bid, research comparable sales and seek out justifications for your bid.
Short sales require approval from the owner and the bank(s) involved on the purchase price and terms.
Having written permission from the seller to discuss terms with the bank can be really helpful, but consult a lawyer first to ensure that the appropriate documents are in place before you ask the seller to sign anything that might violate GA law.
Relationship skills are key during this process. The bank will often need days, if not weeks, to respond to an offer and move the process forward. Often they request additional BPOs (Broker Price Opinions) or modify appraisals, and they sometimes like to involve different negotiators.
Don’t stress yourself out. Prepare yourself and don’t give up.
Before you make an offer, get fully approved for any loan you plan to take. It is imperative that your lender is able to close at the drop of a hat since once you get the short sale approval, you’ll need to be in escrow fast.
Our team secures properties through short sales and works with many investors and buyers in the Savannah area who are looking for great deals on properties.