Things To Know Before Buying Myrtle Beach Short Sale

Myrtle Beach short saleMany people today are using the internet to find “hot” deals in the Myrtle Beach short sale market. When you think you have spotted that perfect Myrtle Beach short sale that really interests you, take a minute to step away from the computer and call a Myrtle Beach real estate agent. They can research the sale and make sure it is truly a good buy.

In many instances a short sale will not close and in some markets it is as few as 1 in 10. There are several factors that much take place, including the approval of the lender, before the sale can actually go through.

How is a Myrtle Beach short sale compared?

Most real estate agents will price a short sale below the comparable sales, however, they are in line with pending sales. What is the reason? Short sales will usually take from 3 to 4 months to close. At the time of closing the pending sale will be compared to the comparable sales on the market.

Many Myrtle Beach short sales are priced so ridiculously low that the bank would never accept the sales price. What the seller is looking for is multiple offers. To expect your offer to be accepted by the bank, the offer needs to be close to market value. If you are not in a position to pay more than the lowball listing price, you really should pass.

Research mortgage amounts and number of loans

Ask your Myrtle Beach real estate agent to find out how much is owed and the total number of loans that are on record for the short sale. In these situations a second or third mortgage holder will receive pennies on the dollar compared to the primary mortgage holder.

There are some lending institutions that have a reputation for being difficult to work with. Your agent is aware of these lenders and can give you good advice on how to handle certain mortgage holders.

A good rule of thumb is if your offer is 20 to 30 percent of the amount owed, it is unlikely the mortgage holders will negotiate.

The Myrtle Beach short sale agent’s track record

 

Be leery of an agent who is hired to market a short sale and has never closed a short sale. Why? It is the responsibility of the listing agent to submit the bid to the mortgage holder and then work to negotiate a price. Your agent cannot talk directly to the bank.

You need to ask yourself if you want to risk losing the purchase of your short sale because the listing agent lacked experience in the short sale arena.

Seller qualifications in a short sale

Request that your agent check with the listing agent for a complete short sale package. A Myrtle Beach short sale package should include:

  • Tax returns
  • Income verification such as W-2
  • Check stubs
  • A complete financial statement
  • Statements from the bank
  • Hardship letter as to why a short sale is needed

You don’t want your short sale delayed because the seller is refusing to cooperate with the bank. You will not be in a position to see these papers but you need to know they have been submitted to the bank.

Offers received

Myrtle Beach homes that are listed under market value will usually receive many offers. The listing agent is not expected to disclose the exact terms of the offers but you can know who many offers have been received. In many instances the following scenario will take place:

  1. The Myrtle Beach short sale is listed and the first offer is slightly below the list price.
  2. The second offer will come in at the actual list price.
  3. The third offer will be above the list price by a small margin.
  4. Then the fourth and subsequent offers will be higher.

Your goal should be to be in a position to make an offer that is better than the competition but still below market value or you are wasting your time.

Short sale procedures

Realtors are held to a code of ethics which requires them to treat everyone fairly, however, not every agent is a Realtor. In some instances a short sale agent may make the decision to only submit the first offer to the lending institution.

Withholding these offers is a violation of the relationship between the seller and the listing agent but it does happen. The seller should receive the highest price for their home. Keep in mind that even if your offer is submitted to the lender, you can still lose the sale if another buyer outbids you.

Contact JP Real Estate Agents when you are looking for a good buy on a short sale. They can help you avoid costly mistakes.

JP Short Sales Team
604 N. 27th Ave Myrtle Beach, SC 29577‎
843-839-9870

myrtlebeachshortsaleteam.com

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>