What should I know about Outer Banks Short Sales?

Short sales have become a larger part of the Outer Banks' real estate market. A short sale occurs when a seller has to sell and they owe more on their property than it is worth. Short sales differ from a normal sale because the seller's lender gets involved. Here are some of the differences: First, they usually take months to get a response from the seller's lender. It can take the seller's lender anywhere from a month to six months to respond to your offer. This happens because the lender wants to make sure the seller has no way to make up the difference owed and because they want to sell the property for as much as possible under current market conditions. Second, a common practice today is for the seller to under price their property to generate a quick offer. They do this because most lenders will not talk with a seller about allowing a short sale until they have a contract on the house. Often these sellers are just a few months away from foreclosure and they are anxious to be done with the property. Third, it often takes a seller a while to provide the lender with all the information they need to make a decision on selling short. Once the lender has all the seller's financial information they get an opinion of value from a real estate agent or appraiser who has no interest in the transaction. As mentioned above, the goal of the lender is to get as much money as possible for the property. They look at what the property is worth, what it would cost to foreclose on the property and then make a decision on the best course of action. Fourth, OBX buyers today often see a short sale property with a status of "under contract continue to show". This status means that a buyer and the seller have agreed on the price and are now waiting for the seller's lender to make a decision. As long as the first buyer continues to move forward with the purchase of the property, the seller and his lender can not sell the property to you. Buyers today often get impatient waiting for the seller's lender to make a decision and void the contract so submitting a back-up offer might be a good option for the right property. There are many other differences in a short sale and a normal sale. Using a Realtor who is familiar with short sales and who is in the market every day will improve your chances of a successful short sale transaction.