How To Buy A West Knoxville Short Sale Part I: Is It Right For You?
West Knoxville and Farragut short sales are prevalent on the Knoxville real estate market. Short sales are not your average real estate transaction. While there is no doubt that buying a West Knoxville or Farragut short sale can be a great bargain, they are not for every buyer. In this five part series, titled, “How To Buy A West Knoxville Short Sale,” we will explore the critical aspects of buying a short sale. In Part I of this series, we will explore what it means to buy a short sale and how to determine if it is the right purchase for you.
First, it is important to understand what exactly these transactions are and what they entail. A short sale is when someone sells their house at a price that is lower than the balance that is owed on the home. Because the proceeds from the sale falls short of the principle balance that is owed to the bank, it is referred to as a “short sale.” Negotiating these transactions can take anywhere from 4 to 6 months or more. In most cases, the person that you pay your mortgage to, known as the servicer, is not the one that owns your loan. The person that owns your loan is the investor. In order for the sale to be approved, the servicer and the investor must both agree on all terms. This is why negotiations can take so long, every investors and servicer has different requirements to approve the transaction. Hopefully, though, with the Federal Housing Finance Agency [FHFA] new short sale guidelines, the process will become more streamlined.
While these transactions can get a great bargain, as a buyer, the require a great deal of patience and flexibility. When considering if it will be the right purchase for you, you need to know that you have the time to wait for the sale to be completed. Also, it is important to remember, there are no guarantees in these transactions.
Another thing to keep in mind when buying a one of these is that there is little room for negotiations on the buyers end. In a traditional real estate transaction, there is more wiggle room for negotiations. This is not the case in short sales. You are negotiating with a lender who is already accepting less than is owed to them, so they are unlikely to agree to certain demands. You are already getting a great bargain, so the lender is less likely to give in negotiate on certain thing.
In Part II of this series, “How To Buy A West Knoxville Short Sale,” we will explore the importance of picking a real estate agent with short sale experience.
Are you considering buying a West Knoxville or Farragut short sale? If so, please do not hesitate to give Knoxville Home Team a call. Rick can be contacted at 865-696-9002 or via email at [email protected]. Kati can be reached at 865-696-1888 of via email at [email protected]. Knoxville Home Team has successfully negotiated many short sales as well as helped guide many buyers through the process, we’d be more than happy to help you find the right bargain for you!