Buying a home in a short sale can be a great way to get a desirable property at an advantageous price. However, short sales are a special area of real estate that the uninitiated can make mistakes with if they are not careful.
The following are five big mistakes you need to avoid in a short sale so that you avoid getting yourself into a closing agreement that's not in your best interests:
Being inflexible in regards to your move-in date
Short sales are great for getting you a hard-to-find deal on a great property. However, they often require a buyer to wait patiently for the right property to come up and then act quickly when they find that property.
All this means that short sale buyers need to be flexible about their move-in date and about meeting the sellers needs for viewings and negotiations that are planned last minute.
Being unaware of what the actual market value of the property in question is
You can't know if you're getting a good deal on a short sale property if you don't know what the actual market value of the property is. Do you research to avoid offering too much for a short sale property because you're caught up in the excitement of making an offer.
Working with a real estate agent with no experience in short sales
Again, a short sale is a unique type of real estate sale that your run-of-the-mill agent might not be familiar with. Before you get involved in a short sale, find an agent with the necessary experience to guide you well throughout the process.
Shopping for a home when you haven't gotten very far along in an agreement with a mortgage lender
Short sales typically require you to act quickly and to have a lender available to you right away when you need it. Therefore, you shouldn't begin viewing short sale properties until you already know who's going to be providing you with your mortgage loan and how much you'll be able to borrow.
Neglecting to have the property inspected before making a commitment on it
You never really know the condition of a property until you have it inspected by a real estate professional. Don't get too caught up with a particular property until you sure that it is sound and doesn't have some severe defects that will make it a money pit even if you're able to purchase it at a very low price.