Knowing a few key facts about short sales may help you decide if you want to include these types of properties in your Outer Banks real estate search. Here are the top five facts about Outer Banks Short Sales:
Under contract continue to show:
Often they already have at least one contract on them. The local Multiple Listing Service has listing agents put their under contract short sales in an under contract continue to show status. Properties with this status are included in the data feeds that go out to all the web sites. Most buyers don’t want to waste their time with a house that already has a contract on it. So look closely to see if the status of the house is active or under contract continue to show.
“As is” purchase:
Most times short sales have not been maintained like a regular home. There is no money for repairs to be made so the buyer purchases the property in an “as-is” condition. Of course the buyer can have a home inspection once they know the bank accepts their contract. If they don’t like what they find then the buyer can void the contract. If you are looking for a home with little or no immediate maintenance then short sales may not be for you.
Extended waiting period:
It can take a long time to get an answer. Before the seller’s lender will approve a short sale there is likely to be a long waiting period. During this time the lender will check to make sure the seller can not bring money to closing, as well as make sure they are not underselling the property. This can take months. Buyers looking at short sales around the holidays should hopefully be able to close on the house before the summer season.
Most lenders will not talk with a seller about a short sale until they have a contract on their house. Therefore, a common strategy sellers use to speed up the short sale process is to under price their property. Sometimes the seller’s bank will want the buyer to pay more than that asking price.
Rental Income issues:
Buying a vacation rental short sale right before or during the main vacation rental season can be tricky. Often the seller has already spent the funds they have already received from the upcoming rental season. The buyer then may end up owning the property and not be getting the proceeds from those vacation rental tenants that paid before he owned the house.
Despite what can be difficult circumstances sometimes with short sales, some buyers end up getting great values on them. Here is a link to all residential short sales through the Outer Banks MLS.