For the investor who knows how to walk, short sales can be a great way to get great deals on
property. But as with all great opportunities, there are risks and warnings. You should know the pros and Con-sale years before participating in a short sale.
Lets start with what is good. There has never been better selling as the market right now, in other words, the real estate market in general has become so severe that the more desperate and anxious for the
real estate market has increased. This means that there are many opportunities for buyers, and many of the estimates of the number of short sales are on the market this year, measured in millions, not thousands. And the money is in selling, whether its a real estate agent, or the possibility of large profits for investors. And you can make a career for a short sale. The NAR is a certified professional (SFR, selling and closing of the resource).
There is too much bad baggage to deal with short sales, but there are enough that it is worth mentioning. First, it is a slow process. Even if the seller is desperate and buyers do not want to wait, it usually takes several months to get approval from bank, and even comes with its own bundle tedious, lengthy paperwork. It is not, as many believe, a zip-in zip-OUT purchase. Another problem is the people treat you, and the image you want to represent. Although in many cases the seller will be grateful for your having saved from foreclosure, sometimes the buyer is perceived as a wealthy
businessman here to enjoy the misfortunes of others. Just take it on the chin and continue if you can, but understand that this is a real possibility.
The last thing I want to mention the part of Con is a set of short-selling, requires a thorough knowledge of standards and the process to be successful and profitable. Moments of despair, people are capable of very ethical behavior. Make sure you understand what is allowed and what is needed in order to avoid being hung out to dry.
Short sales are abundant, and they carry the potential for real benefits. But to be successful to buy a short sale, you must understand the process and the will, please be patient and you must be willing and ready to absorb some anger from the seller. Do your research, and good luck!
