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Located in Valparaiso, Indiana... F.C.Tucker 1st Team Real Estate Blog shares Northwest Indiana Real Estate and Community Information For Lake County, Porter County, La Porte County in NW Indiana. Local Housing Information, Events, Festivals, Activities, Local Sports, Highlights about Local Business and living in the region. Commuting distance to the windy city of Chicago, many residents make the cities & towns and neighborhods of NWI Home Sweet Home.

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F.C.Tucker is Indiana's leading real estate company established in 1918. F.C.Tucker 1st Team Real Estate is the 32nd franchise office in Indiana serving the Northwest corner of the state of IN. Recent news and Stats include: F.C. Tucker is Ranked in the Top Ten Nationally for Agent Sales Productivity!! In the Realty Alliance, 55 of the top market leaders in the nation, Tucker agents rank #6 in sales productivity!! F.C. Tucker is a member of the Realty Alliance, a strategic alliance of the top 50 independent real estate companies in the nation. For 2010 F.C.Tucker was... - 17th in closed volume - 10th in "units" (number of closed transactions) - 6th in productivity per agent - 44 Offices - Over 1300 Sales Associates - Over $2.1 Billion Sold in 2010 - 12,273 Families Represented in 2010 - 10,983 New Listings in 2010
Buying a Short Sale in Northwest Indiana? Things you need to consider before you write that offer!

Some Short Sale Buyers Are Missing The Boat...so to speak :)

Buyers Don't Miss the Boat on Short Sales - They are different from Traditional Real Estate transactions

Lately, we've come across some short sale buyers that have miss-conceptions about this specific type of real estate transaction that differs from a traditional property purchase and would like to share these...

 

  • Short Sales are not Fire sales....the banks have a bottom line.

Sometimes buyers have miss-conceptions that they can bid very,very low and ask for even more ( i.e. seller concessions) on a listing that is already priced far less than what is owed on the note or below neighborhood comps. Investor Approval is needed a Broker Price Opinion is done on the property and the offer must be in the ballpark to even be considered.

  • Lenders wait around a long time for the best short sale offer to come in before they'll decide which one to choose.

Not so nowadays. It has been our experience recently that the time frame for some of these transactions is decreasing and if one reasonable offer comes in, they accept it and proceed to close. Lenders Approval of the short sale is only a further CONDITION of the purchase agreement. The seller of the property accepts the offer subject to lender approval. Any offer that comes in after the initial offer accepted by the seller is a BACK UP OFFER.

.....one client insisted they had plenty of time to wait to write an offer ....just an hour later that very home was under contract with an excellent offer with hard to beat terms :0  So their offer became a back-up offer that never came into 1st position because the 1st buyers were savvy to know to make a GOOD offer based on neighborhood comps.

  • As a Buyer of a short sale you can wait to do your inspections until after the lender has approved the short sale...

THERE IS RISK involved with writing offers subject to lenders approval of a short sale.

 Spending money up front on inspections or appraisals without even knowing if the short sale will be approved is part of the gamble.

Also, once a short sale approved by the lender - there is a specific DATE in the approval letter that the transaction needs to close by. If the buyers lender, underwriting dept, processor etc... is SLOW for whatever reasons, and this date is missed, the short sale lender may choose not to grant an extension of the original purchase agreement date of closing and subsequently the contract expires. This may allow opportunity for a back up offer to then be accepted by the seller and short sale lender and then become the primary offer.

Short sale properties are many times SOLD AS IS. The inspection is more of an FYI for the buyer, rather than a negotiating tool to get more $$ from the lender.

We recommend our buyers bring an inspector or contractor to the 2nd showing and do their due diligence up front... to check out the property thoroughly BEFORE WRITING an offer on a short sale or REO (foreclosed property), that way they have an idea of what they are getting into.

  • The bank will be ready to close on the date the buyer puts in the contract.

IF YOU are a buyer with ANY type of time constraint for housing - maybe a short sale is NOT FOR YOU.

There could be delays in closing a short sale due to other issues that arise in the transaction along the way. That's why when we list short sales we take back up offers, in case the 1st buyer walks, there is a back up ready to move forward. If you are not willing or patient enough to wait at least 30 to 45 business days for lender approval of a short sale (IN HB 1359) - a short sale purchase may not be something to pursue.

If you are a buyer looking to purchase a short sale or foreclosed property, using a REALTOR with a designation & experience in this specific type of Real Estate Transaction is vital to getting deals done!

 

Thanks for stopping by and reading our Blog about Life in NW Indiana, The Housing Market, Communities, Local Sports, Events, attractions & more.

 F.C.Tucker Indiana's largest Real Estate Company Sincerely,

Jeff & Grace Safrin,  Broker / Owners                              Sign Up For Our Real Estate Newsletter

F.C.Tucker 1st Team Real Estate

13 Lincolnway Suite # 203 

Valparaiso, IN 46383         

Office # 219-309-9930

serving Lake, Porter, La Porte, Jasper, Newton & Starke Counties in NW Indiana

 Independently Owned & Operated

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Published Wednesday, September 28, 2011 9:35 AM by F.C.Tucker 1st Team Real Estate

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