Short sale buying is one of the best options for home buyers looking to get the cheapest homes on the listing. But do note, dear buyer, that buying short sales may not be as easy as it seems. See, short sale Malaysian homes are homes that are in danger of foreclosure. The slightest amount of carelessness and the smallest mistake may just cost you a huge, huge problem including having to assume a mortgage loan gone bad (nobody wants that)!
So arm yourself with knowledge and prudence before jumping into this quickie of a sale called short sale. Here are some of the most common mistakes home buyers make when trying to buy short sales… as told to us by multiple real estate agent friends in the industry.
Stephanie Wong (Wong Realtors): Jumping in to the sale too soon. “Okay, so I get the point of a short sale is to get the house sold as quickly as possible. And I get that, on your part as the buyer, you want things to get done as quickly and as cheaply as possible. But that does not mean you should blindly and carelessly swoop into a hasty decision without considering things – the papers, the current mortgage situation (most important), the current market value of the house, etc. Just because it’s cheap does not mean it’s a good buy, remember that!”
Carmen Liz (Innercity Properties LLC): Not getting a full assessment and inspection of the house. “Considering that the owner of a house is kind of in deep financial rut, you might have to spend on home inspection yourself. After all, you will most benefit from it. You can use whatever you find out about the true structural condition of the house not only to get a sweeter deal on the house but also for your peace of mind – that you’re moving into a house that can protect you and your family through and through.”
George Gubb (GG & Partners): Offering too much just to get the house. “With a house sold a bit too cheaply, the person who bids highest is likely to end up getting the house. But that may not be the wisest thing to do. Make sure that the price you’re willing to go for the house would be justified by the condition of the house as well as its other attributes. Buying it a little more than it’s offered would be a forfeiture of your original intention: getting the house cheaply.”
Steve Hsiao (Oriental Realty): Not consulting the mortgage lender. “This is what makes the short sale crucial. A short sale is never fully final nor legal unless it has the full permission of the mortgage company that holds it. And if you buy the house without checking the status of the house paperwork and legality wise, you might be buying someone else’s trouble. So take that one extra step of talking to the mortgage lender about the house to be fully certain that you are entering into a deal that is clean and with no problems attached.”
Hank Moses Chapman (REMasters LLC): Not consulting a real estate professional. “It may not be in your best interest to try to buy a short sale without an agent and without an attorney. Short sale homes have a little too many strings attached to them that you don’t want to make the slightest bit of mistake that could cost you a fortune.”