Tips For Short Sale Buyers

1.     LOAN PRE-APPROVAL. Before you make an offer, get pre-approved for your loan and submit a pre-qualification letter with your offer.

2.     PRE-QUALIFY LETTER AMOUNT. Have the exact offer amount put in the pre-qualification letter by your lender. Don’t advertise up-front that you can afford to pay more.

3.     PERSONAL STATEMENT. Summit a brief 2-3 paragraph personal bio with your offer to gain more trust with the listing agent and bank. Tell them about yourself, your work,  financial situations and your intent to be a good homeowner.

4.     LENDER CHOICE. Though you don’t have to use them, consider getting pre-qualified by the lender who is holding title on the property. The more they know about your financial situation, the better.

5.     QUICK CLOSE. On your offer, put the closing date at 30 days or less to show you are serious. Just going in knowing that the escrow process will probably be extended by the bank but with shorter terms will make you a more attractive buyer.

6.     PROPERTY COSTS. Make sure to have a full assessment of property damage and understand costs associated with the property before you make your offer.

7.     CONTINGENCY OFFERS. If you make an offer that is contingent on the sale of your current property, you will be less attractive buyer to the bank approving the short sale. It is best to sell your property – or have at least have it in escrow – before submitting an offer on a short sale property.

8.     FIND THE RIGHT AGENT. Talk to a real estate professional who understands short sales and can guide you through the purchasing process.