If you’ve been searching for Sarasota homes for sale, then you’ve definitely encountered more than a few short sales. The advantage of buying short sales is that they are priced really low. However, buying shorts sales in Florida isn’t quite that easy.
First of all, it is essential to know exactly what a short sale is. A short sale simply means that the owner of the house owes more money on the house than the home is worth. The reason why there are so many short sales in Florida is that so many people bought homes at the peak of the market back in 2005. Then, when the real estate market came crashing down so did the value of their home. In most cases, home values dropped so much that if an owner was forced to sell he would have to sell the house “short” of what he owes on the house.
As a buyer you may think this is a fantastic opportunity to buy a home at well below market value. And, for some it is just that. Unfortunately, buying short sales in Florida can also be a huge headache. The first thing you must realize is that once you put in an offer and there has been an acceptance by the owner you are under contract. However, just because the owner has accepted your offer does NOT mean that the bank will. Here’s how it works…When the owner has received an offer and accepts that offer, he must then present the offer to the bank or whichever financial institutions hold the mortgage on the house. However, the bank can then reject the offer…even if the owner has already accepted it. What’s worse is that it typically takes the banks several months to reply. And, since you are technically under contract during this “waiting period” it is risky to put bids on other homes. Therefore, when you put an offer in on a short sale you have essentially taken yourself out of the game for the time being.
That’s not to say you can’t find great deals on short sales in Florida…particularly in the Sarasota area. In fact, there are many great deals on these types of Sarasota homes for sale. For those who have the time (and patience) to wait for the banks to respond, buying short sales in Florida can be a great opportunity for both families and investors alike.
If you’re interested in buying Sarasota homes for sale and want to know the truth about short sales in Florida, then call Tanya Waxler , Florida Licensed Broker and Owner of uKeepCommission Real Estate, at 941-465-9207.