What you need to know to navigate the short sale market in Puyallup

When searching for a home most buyers naturally look for the home closest to their individual needs at the lowest price. That’s a no brainer. Many of the homes that come up on a buyers list are short sales and many are listed at below market value so they look like a screaming deal.

Short sales look like a good deal but are they?

First and foremost the list price has nothing necessarily to do with the price the lien holder is willing to take for the property.  It can be really frustrating to a buyer when they preview a property in their price range put in an offer and find out the lien holder wants 5K, 10K more for the property.

Why does this happen?

What happens in the process is the listing agent must list the house for fair market value in the beginning, but then continues to lower the price every few weeks in order to attract an offer.

The lien holder will do nothing with the property until there is an offer. Once an offer is achieved it gets forwarded to the lien holder who then does an analysis of the fair market value and comes back what they are willing to sell the home for, what closing costs they are willing to pay etc. So please know that a price listed on a short sale can and will change.

Short sales are sold As Is

Also a short sale is an AS IS sale.  Meaning the lien holder will do no repairs to the property. I repeat the short sale lien holder is selling the home As Is and will do no repairs. Our home inspection is only for your information. You still have a contingency period and can back out of the deal should the repairs needed on the home exceed your expectations. But if you chose to purchase the home you are responsible for the repairs.

All that said a short sale can still be a great deal for a buyer and if they know these challenges going in can also be easier to navigate.

Please don’t hesitate to give me a call if you have further questions. I am always here to help.

My Best, Vanessa

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