Are Short Sales Worth It

Dated: 06/17/2014

Views: 133

The answer to this pretty much depends on you. Are you a first time home buyer? If you are then the answer is: I don't think so. I say this because of the roller coaster of a ride that no matter how much you tell yourself you are ready for it you really aren't. Buying a home comes with a fair amount of stress as it is, add to that the never ending variable of possibilities and you will soon find yourself at your wits end with no one that can really give you solace. Not your agent, not your lender, not your escrow/title officer. See, there are so many things involved that no one knows what the ultimate outcome will be. You are romanced by a great sticker price and say to yourself "I will wait forever if I can get it for THAT price!" but the problem is, the price you are under contract for doesn't mean that is the final price you will be paying, you have to get the okay from the bank(s) and with a fast moving, recovering market, I am seeing more and more Banks want a much higher dollar figure since the Brokers Price Opinion (BPO) or if they actually spring for an appraisal, the appraisal comes in much higher then your contracted price. And if you are already at the top of your financing capability then you have potentially wasted 6, 9, even 12 months of time and potentially lost another home that might have been better.

Now lets say you get the bank to agree to the price, well now the fun really begins. You don't know the seller, the list agent may not even realize the seller is keeping some things to themselves and if they have not been upfront with the list agent now the real fun begins. Bankruptcy, State and Federal Liens, Child Support issues all of these and more can throw a wrench into the whole thing and make it impossible to close before your approval from the Banks runs out and you potentially have to start all over. 
I don't know each and every persons personal situation, but I don't thinks the full situation people are getting into is known by them or explained well enough that they are prepared for what lies ahead. Every short sale is different and what I have described here is kind of a worst case scenario but I hope others can glean something from it. 
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Jason DePaz

Jason has been a real estate broker since 2005 and has continued to sharpen his skills to become one of the most outstanding agents in Portland. Working with Jason you will find that he is an excelle....

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