Tips for Buying a Short Sale Home in Phoenix, Arizona
It is nearly impossible to sort through homes for sale in Phoenix Arizona and not come across some great deals that are only available for sale through short sale. Either the short sale offer is already approved by the lender, or the home seller knows they can only sell their home through a short sale but don’t have lender approval yet. In either case, if you are going to purchase this type of home you will need to know some of the following information to make your home purchase of a Phoenix short sale home much smoother.
- Fees & Finanaces
- Inspections & Legal Advice
- Get An Experienced Real Estate Agent
Fees & Finances
Don’t pay them (Fees that is). You shouldn’t have to pay any upfront fees to a real estate agent or to the home seller to make an offer. If you are asked to pay an up front fee to a real estate agent to make an offer on a short sale home, then you should find yourself another agent to work with to represent you. If you are a VET for example and are planning on taking advantage of low VA rates, then you’ll want to let everyone know you are trying to use a VA loan, or whatever type of financing you are planning on using so everyone knows the scoop. Ahead of time, get your financial matters in order so you know exactly what you are approved for, and that you have fixed any issues that may come up in getting your loan.
Inspections & Legal Advice
While you won’t have to pay upfront fees, you may have to pay upfront for inspections if your offer gets accepted. You may even consider having an appraiser appraise the home to determine the fair market value of the home to help give you an idea of what you would want to offer on the home. It is also a good idea to have your home inspection. Talk to an experienced short sale agent about what you should do when buying a short sale home.If you are going to buy a short sale home, make sure you get in touch with an experienced real estate attorney who is familiar with Arizona real estate law. You will also want to speak with a CPA or other tax preparer about any obligations you may have when buying a short sale.Make sure you get property disclosures about the home from the home seller. They should disclose the history of the property since they have owned it.
Get An Experienced Real Estate Agent
This is important. You must work with someone who has dealt with short sales before, unless you want a headache. Ask for the number of short sale deals they have done, and some referrals. You need to do your homework. See if you can find them online and talking about themselves as someone who has experience in short sales.
Last, But Not Least
Give yourself time, be patient, and be aware that just because you are negotiating a short sale offer with the lender they may still sell the home through a trustee sale. You should find out from the real estate agent if they know of any trustee sale information. Has foreclosure been initiated etc.? Most of this information is public so they should be able to help you determine if there is a risk that home may be sold while you are trying to buy it.