San Diego Short Sale Buyers

San Diego Short Sale Buyers: What You Need To Know

So, you are interested in purchasing a short sale home in San Diego, California?  You have heard that short sales are the best deals in town. To assist in determining if a short sale purchase is right for you, below are FAQ's for that potential short sale buyer in San Diego, California.

How long does it take to close a Short Sale? There is nothing short in a short sale.  If you are looking for a quick escrow, a short sale may not be for you.  A transaction can take from two to eleven  months.  Based on the lender or lenders, there is a tremendous amount of documentation, negotiations and other nuances to get a deal approved. 

Why would I consider a Short Sale?  The successful purchase of a San Diego short sale can net a price break between 3 to 6 percent.  Those incredible deals you see; there is a good chance it will never fly with the bank. Financial institutions will often hire an agent or appraiser to perform a Broker Price Opinion (BPO) and identify the actual market price based on comparable sales in the neighborhood.  

Which homes should I consider?  First off, do your homework!  San Diego county offers a diverse array and style of homes. If you are willing to be flexible, there are opportunities at every price point. An option is to identify and select properties that have been through the short sale process and the buyer fell out of escrow. There is a better chance many of the issues with the property and lender(s) have been identified and to some extent resolved.

Which homes should I avoid?  You might want to avoid properties where the bank has yet to approve the short sale process.  The property may have to many obstacles to make it worthwhile.

What else should I look for when buying a San Diego short sale? With an approved short sale, the bank is usually absorbing a significant loss so don't look for much assistance.  Closing costs, home warranties and/or repair costs are a rarity.  Based on the property condition and negotiating tactics, there may be an opportunity for some compensation.

What else should I be aware of?  The process will  take months with little to no results or communication from the selling agent.  Please do not take this out on your Realtor. Unfortunately, your agent has little to no control of the offer once submitted to the listing agent. It is not recommended to insist that your buyers agent call the listing agent continuously. One to two calls per month is sufficient.  If the listing agent has any news, they are more than eager to get the information out.  

Inspect and research:  So you write an offer and yes months later, the  listing agent responds and the offer is accepted. What now?  Ensure your loan is in place, initiate inspections, yes inspections.  Have your agent work closely with the selected Title Representative to ensure there are no liens, clouds, etc.. on the property.  Based on the time frame, you may want to keep homes B, C and D as optional fall-backs.  Lastly, be prepared throughout the escrow/negotiating process to be surprised.  The banks/lenders may "require" that additional funds be brought to closing to satisfy all debts and liens.

Still want to pursue a San Diego short sale purchase?  It may seem more a hassle than it's worth, but patience is a virtue.  Please feel free to contact me with any additional questions.  

   

Contact Information

Photo of Tom Conery & Bruce Rae Real Estate
Tom Conery & Bruce Rae
Best San Diego Properties Group
4305 Gesner Street, Suite 212
San Diego CA 92117
(858) 945-7833
(619) 507-2718
Fax: (619) 276-1740