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Community Corner

How to Buy a Short Sale in Dunedin

Check out these five tips for negotiating the best real estate deal.

Short sales have been the latest craze in the real estate market in the past few years. Many assume these banks are just giving the houses away to any interested buyer. However, the process can be much more daunting than that.

First, understand that a short sale is a term used to describe a real estate transaction in which the sales price is not high enough to pay off the mortgage(s) associated with the property. The banks must agree to release all liens on the property in exchange for a reduced pay-off.

Here are the five things you should know when buying a short sale:

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  1. Hire a realtor with experience in negotiating with the banks. A buyer's agent will not cost you anything, as the sellers typically pay all real estate commissions. In this case, the banks would be paying the realtor fees. Having knowledgeable representation will save you time and money in the long run.
  2. Be prepared to play the waiting game. On average, short sale negotiations take three to six months, but can last as long as 18 months in some cases.
  3. Don't expect to low-ball the bank. Mortgage companies will not likely take your first offer. They hire private BPO (Broker Price Opinion) agents to assess the property condition and comparable sales. The final sale price accepted will be in line with other recently sold homes in the area.
  4. Plan to do some work to the property. Most short sale properties are the result of financially-burdened homeowners. Typically, proper care and preventative maintenance is not done because of a lack of funds. In some instances, desperate homeowners are moving out of the property and removing appliances and fixtures to take to their new residence or even sell for quick cash.
  5. Expect to get a good deal. While there are some cases of IRS liens and second and third mortgage holders that won't budge, most negotiated short sales are a good deal for both parties.

Check out this new short sale listing in Dunedin:

  • 1154 Dixon Court is in deed-restricted Virginia Crossing.
  • It has 3 bedrooms, 2 baths, with over 2,000 square feet,
  • And wood cabinets and granite counter-tops.
  • It is listed at $259,900.

Contact Joyce Lowe of Lowe & Sons, Inc. at 727-799-2894 for more information.

Find out what's happening in Dunedinwith free, real-time updates from Patch.

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