Columbus Short Sales Are Not Automatic Bargains

Short sales simply mean that the home is being sold for less than the outstanding mortgage. The lender involved must approve the sales price and agree to the loss. There is no equity for the homeowner. He or she may receive small compensation, if any, from the lender for moving expenses, along with possible forgiveness for the rest of the debt.

Short sales are generally priced in line with current market values, but sometimes they are actually under-priced. Each home’s valuation and pricing must be carefully analyzed.

While foreclosures tend to be discounted, short sales have the objective of minimizing the lender’s loss. Some seller’s lenders are more “motivated” and some are more “efficient” in moving their distressed portfolio of homes.

Hunting for short sales with the intention of making an automatic lowball offer is not a good strategy. Even if a highly motivated home seller accepts your offer the deal is likely to be rejected by the bank.

Successful Purchase of a Columbus Short Sale

A good portion of the Columbus homes for sale are short sales. Trying to avoid them will limit your choices! Instead, be prepared to handle them correctly:

1. Be certain that your mortgage pre-approval gives you enough time to deal with a short sale. Short sale approval processes have improved in recent months, thanks to program changes by Freddie Mac and Fannie Mae.  However, these transactions still take longer to complete on the average. Stay in contact with your lender. Obtain extensions of your loan approval, or re-qualify as necessary.

2. Be willing to pay for a home inspection. Have it performed early in the buying process. If a homeowner has been struggling with their mortgage, they may have put off some home maintenance. Any known issues should be disclosed by the seller and already factored into the listing price, but it’s best to leave nothing to chance.

3. Use wise contingencies in your Offer to Purchase to give yourself exits from the deal, just in case. I will help you with these.

4.  Be patient.

This is just an introduction to Columbus short sale purchases and the thoughts you should consider. When you are buying a home in Columbus, OH, having me on your side as your Exclusive Buyer’s Broker will give you advantages you would not otherwise have! Remember, unless otherwise disclosed, all real estate agents and brokers work for the seller, no matter what real estate company has the listing. Having your own broker on your side is critically important in all home buying situations, and especially true when purchasing a short sale!

Contact me and learn more about home buying strategies in Central Ohio! Also, download our free e-book for immediate tips that you can put to use today.

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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