Tips on Buying Boca Raton Short Sales
Tips on Buying Boca Raton Short Sales
The Boca Raton housing market is making a comeback, and as prices on Boca Raton real estate continue to increase, short sales are becoming a popular way for investors and traditional buyers alike to find Boca Raton homes for sale priced below market value. However, it's important to keep in mind that short sales are markedly different than traditional real estate purchases. As more first-time buyers enter the market, motivated by record-low interest rates, short sales are becoming much more commonplace. Short sales have increasingly become more common than foreclosures within the South Florida housing market, which is another reason why some buyers are now more interested in these types of transactions.
According to a recent report issued by RealtyTrac, short sales represented 22% of all real estate transactions in the third quarter of 2012. Buyers often prefer short sales even though they are not more efficient than foreclosures, as they offer a substantial discount on in-demand properties. Because competition among buyers for short sales is on the rise, it's important to carefully consider the condition of Boca Raton short sales before placing a bid. For instance, some may require repairs or renovations in order to meet housing codes, which can cost the new owner a sizable amount of money if they aren't resolved prior to the sale. If repairs are required for the home in Boca Raton that a buyer is offering to purchase, it is a good idea and strongly recommended that a general contractor’s estimate of repairs be obtained and attached to the offer being placed. The short sale lender will consider these repairs at the point of making the offer especially if they are significant. An example of a significant repair would be roof repair/replacement or mold remediation.
Pre-approval for Boca Raton short sales is one of the best ways to ensure an efficient transaction. In the meantime, buyers should find out more about the mortgage on the home they'd like to purchase. If possible, buyers should find out if the home owner has more than one mortgage on the property and who the lenders are. Some lenders take longer than others to process the short sale.
Although the seller of a Boca Raton short sale may accept an offer, that's no guarantee that the lender will make the same determination. The lender and/or investor have the final say on whether or not to accept a short sale bid. Yet, buyers can increase the likelihood that the lender will accept the offer by including statistics on comparable Boca Raton homes that are being sold at or near the same amount of money offered. It is always a good idea to use an experienced short sale agent and a buyer should interview their agent before purchasing a short sale property.
Thanks to new federal legislation, the process of short sale transactions has become much more streamlined in the past year; however, some short sales can still take a considerable amount of time. If it seems likely that the short sale will take a while, then buyers should find out whether or not the mortgage interest rate is the same as when they initially placed the offer. Although short sales require a bit more patience than traditional real estate transactions, including foreclosure transactions, they often offer buyers the chance to find deals on Boca Raton homes priced below market value.
If you'd like more information on the latest Boca Raton short sale trends that may affect your purchasing decision, please don't hesitate to reach out to us. We'd love to share the latest news on the Boca Raton real estate recovery with you and your loved ones as you search for your future Boca Raton home or condo.
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