A common question we get a lot especially in the last real estate recession was whether or not short sales are sold as is.
“As Is” meaning the short sale seller (nor the bank) will provide any credit or perform any repairs after an inspection takes place.
Are Short Sales Sold As Is
In most cases short sales are sold as is in my experience. We have performed several hundreds of short sales saving people from foreclosure. And I can tell you that majority of the short sale sellers are selling as is.
Short Sale Sellers Maybe Insolvent
In a lot of cases, the short sale seller is insolvent, so they are not in a financial position to make any repairs to the property, thus selling the short sale property as is.
What Happens If The Short Sale Needs Repairs
First off, if you are buying a short sale, I recommend thoroughly go through the property prior to making an offer.
The reason is, you do not want to waste the sellers time, only to have you back out because the short sale is sold as is and needs too much work. So do your homework.
With that said, you can always get certain loans that will allow a repair / renovation budget. You can learn more about that in this video on How To Buy A HUD Home with $100.
Should You Buy An As Is Short Sale
Well, many times traditional sales are sold as is. And in my experience, because a short sale is a distressed property, it could sell for 10-15% under market value.
So, the risk on the buyer’s side could be worth the reward. And, you are helping someone avoid foreclosure in the process.
It is a real win win. But as previously mentioned, do not go into the short sale with the intent to beat up with seller with credits or repairs. You will waste everyone’s time and could jeopardize the short sale in its entirety.
Tips On Buying A Short Sale
If you are in the market to buy an As Is Short Sale, then you will want to check out this video and article as I discuss 5 Main Tips.
Are You A Short Sale Real Estate Agent?
If you are a real estate agent looking to list and sell short sale properties and help people to avoid foreclosure, then be sure to check out this inexpensive Short Sale Mastery Course.