Loxahatchee Short Sales Gone Wrong.
You might have heard stories of Loxahatchee short sales gone wrong. Almost ⅓ of all short sale deals fall through. Knowing the reasons why these short sales fall through will help you ensure that your Loxahatchee short sale will be a success.
Here are some of the reasons why Loxahatchee short sales go wrong and how to avoid them:
1. Stricter standards in lending
Buyers find it more difficult to obtain a home loan these days. More than 25% of applicants for mortgages are rejected, which makes it even more intimidating for borrowers to attempt to get a mortgage.
Tip: To save yourself from the hassle of going through a Loxahatchee short sale just to find out that you aren’t qualified for a home loan, make sure to get a prequalification and preapproval from the lender to determine if you are qualified for a loan before you make an offer for a short sale.
Submit your offer with a preapproval letter. A preapproval letter bears more weight than a prequalification letter since this signifies that the lender has approved you for a loan. A preapproval letter is as good as cash to a Loxahatchee short sale seller.
2. Low Appraisals
Some lenders hire outside appraisals and the disadvantage of this is when the appraiser is not too familiar with the area of the Loxahatchee short sale, they will rely solely on the numbers in the books.
This means that if there are several foreclosures in a particular neighborhood, it will significantly affect their appraisal, and they may overlook the desirability of street that the Loxahatchee short sale is in.
Once the appraisal turns out lower than the amount of the Loxahatchee short sale, the buyer will not be able to get the full amount of the loan to cover the payment for the home, making it necessary for the buyer to cover the difference with cash.
Tip: Hire an appraiser who is very familiar with the area. If the appraiser needs a GPS to find your Loxahatchee short sale, this should be a warning sign that they are not familiar with your area.
3. Perfectionist buyers
There was a time when buyers didn’t make a fuss if home inspections uncovered some defects in need of minor repairs because this became an opportunity for them to negotiate for a lower price with the seller.
In today’s market, buyers are tighter with their finances and a Loxahatchee short sale that needs repair could give them second thoughts about buying since they would need to spend more for it later on for repairs.
Tip: Have your Loxahatchee short sale professionally inspected before listing it. Once you discover all the damages and problems, make all necessary repairs, however small they are. Your Loxahatchee short sale agent should make this report available to all serious buyers so they won’t end up surprised when they get their own inspection done.
4. Short sales is a painstaking process
Short sales in Loxahatchee and elsewhere are long and usually frustrating, with many parties involved. While waiting for an approval for your Loxahatchee short sales, the prices of homes continue to drop every day.
Although many buyers look for great bargains in Loxahatchee short sales listings, the risk is the time they lose in waiting.
Tip: Fannie Mae has released new guidelines to streamline the waiting time for short sale approval. These guidelines were effective since November 2012 and has benefitted both buyers and sellers with shorter waiting periods. This means the sellers can also move on faster with their lives after a Loxahatchee short sale.
A Loxahatchee short sale gone wrong can be avoided if you follow the tips mentioned above. Hiring an experienced Loxahatchee short sale agent is the best way to ensure that your Loxahatchee short sale will be a success.
Contact Nestor Gasset and Katerina Gasset at 561-753-0135 today to help you navigate through the short sale process in Loxahatchee.