Short Sell- Quick Sell
August 2, 2010 7:48 PM Subscribe
What should I know as a potential first time home buyer looking at buying a short sell property direct from a bank? My parents have happily lived in the same condo/apartment in Honolulu for over 15 years. Recently, a real estate "friend" of theirs said there is a unit in the same apartment which is going for very cheap because it is a short sell... key word is " real estate friend". My parents said it would be a great investment, but they have never been too good with research and finances and drawn in by storytelling of so called friends and sensational people. Are there any tips on what I should watch out for or anything I should know beforehand before plunging into this?
posted by peachtree to Home & Garden (7 answers total)
For some background information: I'm 26 with about 100k USD in the bank and the apt in question is 350k USD... and besides getting a mortgage and "investing" in real estate the money's just sitting there doing nothing. I feel somewhat pressured to buy! quick! get a mortgage! because it is a short sell and they say it's so cheap now it's a hot piece. I checked on zillows.com and the apartment has been on the market for 5 months now.
I've been super tight with saving money since I finished college, such as buying a crappy car, budgeting, being frugal to eventually buy an apartment as an investment, but now it seems like if I get a mortgage all the savings will be gone in one swoop and it's a bit scary.
The apartment would be purchased by me and in my name, and brother live in it (a nice to have, not need to have as he lives with my parents know). I'm fine with the idea but there's always buts...
So of course the big questions:
- how much worse is the housing market going to get? I keep reading about double dipping economy and how it's not getting better... so is it even worth it to jump now or wait? Eek
- Are short sell houses even a good deal versus traditional method (which I don't even really know)
- With short selling, is it still beneficial to get a mortgage preapproved or it's the same as going through the real estate agent to set me up with a mortgage
- Looks like I missed out on the First Time Homebuyer Tax Credit of ~8000 USD that ended a few months ago... any idea if that will be revived or it's totally done for?
- for a short sell I've read a bit that it's tough to negotiate because the listing price is roughly about the price of the property... is that true?
- can you ask a bank doing a short sell to refurbish/redo say the bathrooms and kitchen? Or is that only done when you are buying direct from a homeseller
- anything I should keep in mind as extra cost? Such as property tax... I really have no idea!
(as a side note this is doubly confusing because I don't even live in the same state/country at the moment so can't go to a bank or whatever in Hawaii to directly ask these questions... plus not sure if it'll be skewed towards the bank's benefit)