If you are ready to put an offer on a Charlotte short sale, and the short sale has been accepted at a price that seems just right, you still shouldn’t breathe a sigh of relief since there are still the inspections to get over with.
Inspections are often the most critical, possibly deal-breaking point in a Charlotte short sale transaction where buyers could walk away from the deal.
What could have started out as a great deal could turn sour once the bank refuses to lower their price to make up for damages and defects that are uncovered during home inspections of the Charlotte short sale home.
As a buyer, here are some tactics you can use to turn the table to your favor in working with the parties involved:
1. Starting Day 1, ask for seller concessions. The short sale process officially begins once you submitted your purchase contract to the listing agent and once they have gathered the rest of the documents they need such as proof of funds, HUD, and prequalification. This will be your first opportunity to ask for concessions, to prepare yourself in the event that the bank won’t concede in lowering the asking price to make up for damages in the home.
Ask the title officer who prepared the HUD for your contract to add seller concessions. They could start with 3%. If you are financed, it will be very beneficial for you to add these concessions. You could still ask for concessions even if you are paying cash. They could say “No,” but in case they approve, the lender will have little room to budge and gives you some sort of a buffer as a buyer.
2. Provide a Home Inspection report and repair cost estimate. The inspection period will start once the Charlotte short sale is approved. There is no difference on what you could negotiate during inspections of a short sale compared with a traditional sale.
The only difference is the deciding party with the last say is not the seller, but the lender or MI company. This means you are not trying to convince someone who is more aware of the property’s condition, but a company to accept a lower value than what they have already approved and accept more losses for the home.
Make it simpler for the lender by breaking down specifically what’s wrong with the Charlotte short sale home, how much it will cost to repair it, and submit a formal inspection report summary and a repair cost estimate done by a professional. Let’s say the total estimated repairs amounted to $10,000, and then you could probably ask $7,000 off from the home’s price. This will appear that you are willing to take less than what is needed for repairs and hope that the lender might concede to your request.
Even if the Charlotte short sale is being bought in an “as-is” condition, you still have the right to negotiate on the price. You are not asking the lenders to fix the home, just lower their price so you could still have enough left for repairs.
Couple this with comps of other similar Charlotte short sale homes, a new HUD, and a price addendum. Providing them with quantitative data will make it easier for them to decide on whether to accept your offer for a lower price.
Although we can’t control the final say of the lender in accepting your short sale offer, knowing and understanding the Charlotte short sale process will help you work it out to your advantage.