Avallone Law Associates

call for a free initial consultation

Pros and cons of buying a short sale property

| Jun 20, 2019 | Residential Real Estate |

Short sales in Pennsylvania offer a great opportunity to obtain property at a fraction of their actual value. However, short sales do present some risks. For starters, Redfin, a real estate brokerage firm, reminds buyers that short sales are rarely short. Thus, one of the main cons of short sales is that buyers may need a few months’ worth of patience when making an offer. It takes a long time for the sale to be finalized and all the paperwork to be processed. This is not a good option for people who may need to move soon.

This does create the advantage of less competition for the home. Most homebuyers are not willing to wait for long stretches of time to secure property, even when they are only purchasing it for investment purposes. Less competition also helps to keep the price lower as the current owner and the bank may be motivated to sell the home before it gets stale on the market.

Another advantage with a short sale is that the buyer tends to remain in the home during the sale process. This differs from a foreclosure, prompting many owners to keep the home in the best shape possible, especially for showing to potential buyers. It is important to remember though that short sales result from financial hardship, so the buyer may be behind on some home repairs. Be sure to ask when the roof was last replaced, how old the HVAC system is and whether or not there are any upcoming repairs.

Forbes notes that for this very reason a lot of short sale homes are fixer-uppers. It is important to keep this in mind when purchasing the home, so there is no disappointment or unpleasant surprises. Because of this, beyond asking questions, it is important to do a thorough inspection of the home and get repair estimates from a professional. As long as all due diligence is completed and the price is right, buyers often manage to secure the deal of a lifetime.

Archives

FindLaw Network
attorney image

Testimonials

Thank you for helping me out of such a deplorable situation. I appreciate all of your help and advice and dedication to your clients.
-Chanda, Philadelphia, PA