Five Things a Columbia SC Buyer Needs To Know when Purchasing a Short Sale
1. Repairs - Neither the seller nor the lender is likely to make repairs on the property.
Many short sale properties in Columbia SC have deferred maintenance, as the seller may have stopped maintaining the property since money is tight. By the time the sale occurs many Columbia SC sellers are either unable or unwilling to pay for repairs, knowing that every dollar spent on the short sale is a dollar that they will not get back. If a Columbia SC buyer wants to purchase a Columbia Short Sale and the property requires repairs before the buyers lender will approve the loan, the buyer should find a way to make repairs themselves or find a different property to purchase. There is a 'risk' to the buyer repairing a property before it is theirs or before they receive a written short sale approval from the lender. If the buyer repairs the property and the short sale is not approved, or the buyer opts to walk away; then the buyer would have wasted their time and money on a house they will not own. Furthermore few contractors will work on a home and wait to get paid.
2. Concessions or Lowering the price - If a Columbia SC Buyer waits until after short sale approval to ask for repairs it is far less likely that it will be approved.
Some Columbia SC buyers wish to wait until after written short sale approval is granted to conduct their home inspections. In a traditional transaction, the inspection period would be the opportunity for the buyer to request a credit or price reduction for repairs. Columbia SC buyers should realize that if a lender has already approved a short sale, then it is very unlikely that they would approve a price reduction or a repair credit. If a Columbia SC buyer believes that repair credit or price reduction is needed, I recommend that they conduct their home inspections immediately after the signing of the offer to purchase. In my experience it is much easier to amend the offer price or terms of the transaction before the Columbia SC sellers lender makes a final decision.
3. Time - It typically takes months to receive a response from the Columbia SC sellers lender
Columbia SC short sales typically happen gradually, then suddenly. A Columbia SC buyer who needs to move into their home within 60 days of making an offer should really consider making an offer on a property that is not a short sale. Since a closing date is hard to predict early in the short sale negotiating process, and as we discussed earlier there is a 'risk' that the short sale may not be approved. Any Columbia SC buyer who wishes to buy a short sale should be patient and not under pressure to move in soon.
4. Under Contract- If the Columbia SC buyer and seller are "under contract"
Once a Columbia SC buyer and seller sign a contract they are committed to each other. Some listing agents mark the property "Active Contingent" and continue to market the property for better offers. This may jeopardize the buyers position, as there is a possibility that the seller and listing agent may seek to terminate the offer to purchase in favor of a better offer. If the Columbia SC buyer has already paid for inspections, appraisals, an interest rate lock, or other cost associated with the purchase of Columbia SC real estate. It may be best for a Columbia SC buyer to insist that the listing agent mark the listing "Pending"
5. Additional Cost - Be prepared to pay a little more at closing as last minute expenses creep up that the sellers and their bank may not pay.
As final fees and closing expenses are tallied on the Settlement Statement, there is a possibility that someone will have to pay more than expected. A utility bill that was not expected, property tax credit or charge. This may mean that the Columbia SC buyer may have to pay a little more just to ensure that the closing occurs. The Columbia SC buyer should be prepared to absorb additional cost in this case.