A short sale can be a wonderful deal, but it can also be a nightmare. While the price may be enticing, that doesn’t mean the home is right for you. Whether it’s the amount of work that needs to be done or an iffy inspection, there may be times when you need to walk away. The following are just five reasons you should avoid purchasing a short sale home.
There’s a Lot of Work to Be Done
Most short sale properties are well taken care of because the homeowner is still living in the home. However, there’s a good chance that the home’s maintenance has been overlooked due to the owner not having the funds to do the work. If you notice that there are several projects that need to be taken care of, this may not be the home for you, especially if you’re looking for a walk-in ready property.
The Disclosure Statement Has Red Flags
The disclosure statement should never be overlooked. A disclosure statement tells home buyers what the seller already knows about the property, such as the home being in a flood zone or that the foundation is in need of repair. If the disclosure statement raises red flags, you want to keep looking for the perfect home.
The Price Is Great, But the Home Isn’t
Don’t let the price of a home be its only selling factor. While a short sale may have a enticing price, the home may not be right for you. There may not be enough square footage or it may be located too far from work. Never let the price be the deciding factor when buying a home. While price is important, an affordable home that you quickly grow out of could turn out to be a disappointment.
The Price Isn’t Right
When buying a regular property you have the option to submit an offer that is lower than the asking price. While this is also an option with a short sale, it can take months to get an answer back from the bank. If you find a short sale that is out of your budget, you may want to keep looking.
An Inspection Reveals Serious Problems
Lastly, an inspection should never be skipped when purchasing a short sale home. While banks usually don’t cover the cost of repairs, it pays to know what you’re getting into. A home inspection could save you from buying a home that needs major repairs that aren’t easily detected. If a short sale comes up with major problems that are well out of your price range, it’s time to keep looking.
A short sale can be a wonderful way to get into a property for less than it’s worth, but sometimes the home you’re looking at isn’t worth buying.
About the Author: Ali Kulling and her husband bought and renovated a short sale home, adding new high quality door sweeps and completely weatherizing the home. The home they bought wasn’t the first short sale they looked at, though. Make sure you do your homework before placing a bid.