During your hunt for a new Omaha, NE home you may come across properties that are listed as a short sale. If you are not familiar with this real estate phrase then you are in the right place as today we are going to be discussing not only what a short sale is, but also the pros and cons that can come along with it. Let’s dive in: What is a short sale? When a property owner owes more on the outstanding mortgage than the home is worth a short sale can take place. Essentially, the bank or mortgage company will allow the owner to list and sell the home for “short” of the amount that is still to be paid. Even though this causes the lender to lose money in the deal, it is still seen as a better route for the bank and property owner than foreclosure. Pros of a short sale: -The obvious upside of a short sale is price. A buyer has the potential to purchase a home for a lower price and get into a house/neighborhood they otherwise may not have been able to afford. -A short sale can be less risky than purchasing a foreclosure as the homeowners are likely to still be occupying and taking care of the property. -Another pro of a short sale is that you are likely to find way less competition as many buyers tend to shy away from situations that are not a standard transaction - this is especially true with first time home buyers. Cons of a short sale: -Homes are sold as-is in a short sale and the buyer is not able to negotiate price based on necessary home repairs, updates or improvements. -On that same note, you may find the home needing repairs/updates/improvements so it is a good idea to get a home inspection and factor these costs into your budget. -A short sale transaction has the potential to take longer than a traditional home sale as the lender that holds the mortgage has to approve the offer in addition to the seller. During your hunt for a new Omaha, NE home you may come across properties that are listed as a short sale. If you are not familiar with this real estate phrase then you are in the right place as today we are going to be discussing not only what a short sale is, but also the pros and cons that can come along with it. Let’s dive in: 

What is a short sale?
When a property owner owes more on the outstanding mortgage than the home is worth a short sale can take place. Essentially, the bank or mortgage company will allow the owner to list and sell the home for “short” of the amount that is still to be paid. Even though this causes the lender to lose money in the deal, it is still seen as a better route for the bank and property owner than foreclosure. 

Pros of a short sale:
-The obvious upside of a short sale is price. A buyer has the potential to purchase a home for a lower price and get into a house/neighborhood they otherwise may not have been able to afford. 

-A short sale can be less risky than purchasing a foreclosure as the homeowners are likely to still be occupying and taking care of the property. 

-Another pro of a short sale is that you are likely to find way less competition as many buyers tend to shy away from situations that are not a standard transaction - this is especially true with first time home buyers. 

Cons of a short sale: 
-Homes are sold as-is in a short sale and the buyer is not able to negotiate price based on necessary home repairs, updates or improvements. 

-On that same note, you may find the home needing repairs/updates/improvements so it is a good idea to get a home inspection and factor these costs into your budget. 

-A short sale transaction has the potential to take longer than a traditional home sale as the lender that holds the mortgage has to approve the offer in addition to the seller. 

 

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