There is a lot of buzz in the Seattle media about short sales. So what the heck are they anyway, and how can they save you tens of thousands of dollars on a home?
Put simply, a short sale is when a home owner is trying to sell a house, but the proceeds from the sale of the house will not be enough to cover the loans currently owing on the home. So the seller will need to get bank approval once a buyer makes an offer on the home, because the bank will not get all of their money back when the home sells.
Why is this a big deal?
A short sale situation can be a big deal as far as the time it takes to close on the house. Because of the extra step of having to get bank approval, the process can take several extra weeks to several extra months to complete. Each bank has its own process for considering short sales and not all of them are very efficient. Part of the problem is the volume of short sales that many banks need to consider. There are a lot more now than a few years ago.
The time lines are a serious consideration. Take a client of mine right now. They are first time home owners who don't have a lot to spend on a home. They found a house they like but it is a short sale situation. They decided to move ahead with the offer. We agreed on terms with the seller, did an inspection and the offer went to the bank. The timeline has been delayed several times by the bank. First they told us a few weeks now it is looking more like about a month and a half. In this situation the bank has all the power and can take almost as long as they want to make a decision.
So why would anyone consider buying a home that is subject to a short sale?
Quite simply price! If a seller is not going to make any money on the sale of their home anyway, you can imagine they are much more flexible on terms and price of the sale of their home. If you are the only person making an offer on the home, the bank will need to take the offer seriously, even if you offer significantly less than the asking price for the house. In many Seattle neighborhoods, short sales represent some of the best deals around. In the case of my buyers, we will get the house for nearly $75K less then what the house was refinanced for just a year and a half ago. Well below market value. (I won't tell you the value of the home because the negotiation is still going on, but it is well below $300K)
In short (pun intended) there is no reason to be afraid of a home that will be subject to a short sale. In fact they may be some of the best values out there. Just be prepared for a longer timeline, a little more hassle and be sure to use an escrow company, mortgage company and if I may be so bold, real estate agent with some experience in short sales. You may just find that hidden gem at a bargain basement price.
Happy Hunting
If you are up to a year away from buying a home, now is not the time to be talking to a bank. Here is my recommendation for what you can be doing right now to put yourself in the best position when the time comes to buy your home.
Seattle based Starbucks is hosting a promotion to try to encourage or at least reward people for voting. If you go into a Starbucks tomorrow and tell them that you voted, they will offer you a free coffee.
Can I vote more than once?
Ok, so it doesn't rhyme, but you get the idea. It is recommended that you change the battery in your smoke and Co2 detectors twice a year. An easy way to remember to do so is to change them in the spring and fall when you adjust your clocks for daylight savings. Tonight is the night we all need to wind those clocks back and gain an hour of sleep (or whatever frivolity you plan on doing tonight). So go buy new 9 volts and trade out the old ones. It's cheap and keeps your family safe.
Now if there were only a way to protect the family from leftover Halloween candy, Hmmmmm.
Home owners!
Before you run out and spend thousands of dollars to remodel you home to get it ready to sell, watch this video. You may be surprised at what you need to do and more importantly, not do, to get your house ready to sell.
Residential Real Estate Specialist. My specialty is first and second homes, single family, townhomes and condos, under $750,000. I gladly pay 25% referral fee for relo clients.
Hi. My name is Rob Graham. For the past three years it has been my pleasure to work as a realtor with Windermere Real Estate. I love what I do and attack it with enthusiasm and passion. I choose to work with Windermere, not only because of their market dominance in the Seattle area, but because of the world class support they provide. It is my firm belief that if you want to be the best, you must work with the best.
When not hard at work I enjoy an active lifestyle. When the weather is nice, I love to get outside. Biking, softball and volleyball on Alki are all favorite ways to enjoy the summer months. When the weather turns cloudy I head indoors for more volleyball and basketball.
I also love to travel. Recently I had the opportunity to take an extended trip to Australia and New Zealand. I loved the beauty of te country and relished how welcoming the Ausies were. I have to admit I could do without the enormous bats though! Other favorite vacation locations have included Scotland, the Carribean and Ireland.
On any given Wednesday night you will find me volunteering at Children's Hospital. For the past seven years I have spent over 700 hours with some of the most amazing people I have ever met. I continue to marvel at what an amazing resource Children's provides to the families of Seattle and count my time there as one of the most valuable accomplishments of my life.
As an Accredited Buyers Representative, first and second home buyers represent approximately two thirds of my business. The other third is devoted to the successful listing of homes. I love real estate because of the excitement and energy that clients just like you bring to the process. You have a unique set of needs. I see it as my challenge to make your priorities my own and carry you to a successful resolution.
It is my goal to not only have a relationship with you for the short term transaction, but also to become a trusted advisor for life that you can turn to for all of your real estate needs. I achieve this by focusing my efforts in three specific areas. First I am your consultant. I pride myself in being an expert in all areas of real estate. Whatever your situation I have the experience and support to satisfy your needs. Secondly, I am a tenacious negotiator. I treat your priorities as my own and in doing so find you exactly what you are looking for and get it on the best possible terms. Finally I am a meticulous overseer of details. There are hundreds of twists and turns to every real estate transaction requiring constant attention. Myself and my team of experts obsess over the details on your behalf to ensure that no detail no matter how small is overlooked.
Let me show you what it is like to be in the hands of an expert. If you need advice on real estate in the greater Seattle area, give me a call. I'd love to help.
"Absolutely professional. Above and beyond the expected level of service."
"Rob kept our stress levels low during a struggling sales market. Rob also did several favors for us that I consider well above and beyond his responsibilities. I could not have expected better service.
"My experience could not have been better."
"We really enjoyed working with Rob and his Mortgage broker. They worked together to make the home buying experience a good one."
"We were really happy with Rob's responsiveness and professionalism. Great experience!"
"As a first time home buyer, I had more then my fair share of questions. Rob was very patient with answering all of them and helped put me at ease at every turn of the home buying process."
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