How to bid on a short sale property

Short sale properties can be a great source of income for investors, and a great deal for home buyers.

It’s important to keep in mind that a short sale is one where the bank has approved a loss on a current loan. They’re losing money, so they want to unload.

Generally the current owner is in a rough time, or wouldn’t be facing the loss of the property. Difficult times mean tremendous amounts of stress and emotional turmoil.

Managing relationships is always the key to any negotiation.

For the bank, a short sale is an unemotional transaction. An owner may be letting go of a property with great emotional significance.

You’ll have to take different approaches with every party to a short sale transaction to get the best result.

Data is on your side. Look up comps to get an accurate picture of the market, and seek out justifications for your offer prior to submitting a written bid.

In a short sale, you have to get agreement from the owner and the bank(s) involved on the purchase price and the terms.

Getting written permission from the owner to discuss terms with the bank can be really helpful, but check with a good lawyer to make sure you have the right documents before you ask the seller to sign anything that might violate South Carolina law.

Your relationship skills are super important during this process. The bank will often require days, even weeks, to respond to offers and move forward. Often they request additional BPOs (Broker Price Opinions) or modify appraisals, and they sometimes like to involve different negotiators.

It can be intensely frustrating, so prepare yourself and don’t stress.

Get fully approved for any loan you plan to take long before you make an offer. Make sure your lender can close at the drop of a hat, because once the approval comes for the short sale transaction you need to be ready for escrow.

We secure properties via short sale, and we work with many investors and buyers who are looking for great deals on properties in the Charleston area.

Give us a call (843) 881-7171 or get in touch anytime to find out how we can help you!

Steve Banis

About Steve Banis

When I originally began investing in Real Estate, I wasn’t a real estate agent. And I still do not list houses as an agent! No, I’m not proposing that I list your home, or have you sign some kind of agency agreement. My involvement with you and your property is for our own investment portfolio.…. not the score-sheet of a Broker. My background includes that of being an executive for several Fortune 500 companies since 1968, an owner of real estate since 1975, a businessman in Boston, MA and Charleston, SC. I am a VETERAN of THE UNITED STATES ARMY, beginning my Service career January 1964, in Columbia, SC on Tank Hill at Ft. Jackson. I have been up and down the ladder in my business as well as my personal life - therefore I am well qualified to understand the various situations and challenges of the homeowners we meet. We can help provide solutions to various real estate challenges and situations. My passion is to assist in the sale and purchase of real estate. The rest of this report tells you how our company, CASH HOMEBUYERS of SOUTH CAROLINA, LLC., will assist you by purchasing your home.

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