Short Sales are becoming one of San Diego’s most prevalent Real Estate transaction types. Here are some important points to remember whether you are buying or selling.
Buying a San Diego Short Sale
- Understand the process – A short sale requires your offer to be reviewed by the bank. Depending on when you get your offer in, the lender can take anywhere from 24 hours – 90 days to consider your proposal. This largely depends on the skill set of the listing broker & how long they have been in process. Your qualified Realtor knows the questions to ask and how to gage the current time frames — brace yourself for a potentially extended escrow if it is the property you owe.
- It’s not approved until it is in writing — Verbal approvals of offers by the lenders are not enough to close escrow. A bank must provide their support in writing so that escrow may continue with the closing — although a verbal may be a significant first step, make sure you find out when the lender will be faxing over the written approval.
- Make sure the PRICE is RIGHT — a listing may be overpriced or underpriced depending on the San Diego Real Estate Broker who it is listed with. The bank is not going to accept an offer $100k under market value so make sure you have realistic expectations and that you and your Realtor have done the market research to determine the amount you are willing to pay based on recent sales in the neighbourhood. The bank will require a 3rd party realtor or appraiser to do an independent appraisal of the property to verify the value before approving your offer and offers not within a specific percentage of the market value will be countered or not responded to.
Selling your home as a Short Sale
- Understand the process — you are applying to your current mortgage servicer to release the lien on your San Diego home for less than what you currently owe. Each lender will have their specific requirements so work closely with your realtor upfront to ensure you have all documents required for approval.
- Follow-up — reach out to your lender and ensure they have all the required documents to complete the short sale approval — even one missing item could keep the right eyes from reviewing your file and cause delays that may make a buyer walk. Remember, the squeaky wheel gets oil.
In current San Diego Real Estate Market, you may find yourself involved in a Short Sale sooner or later. Make sure you know the ins and outs and are paired with the right San Diego Realtor with a track record of closing Short Sales.