Is a Hilton Head Short Sale a Good Idea?
Short sales are in great supply, but are they a smart idea? A short sale in Hilton Head Island is one where the market value of the property is less than the amount that was owed to a lender. Buyers often believe it is a smart investment along with foreclosures.
And this may be true. It depends on your own situation and the short sale property itself. Here are some things you need to know if you want to purchase a short sale in Hilton Head Island.
• The seller is required to disclose that the home is either a short sale or likely will be due to the market value.
• The short sale is not something the buyer can do on his own. He must have lender approval. A short sale isn’t a fire sale – it is done in concert with the lender who wants to get as much value out of the sale as it can.
• When making an offer, make it contingent on the short sale being approved by the lender and set a timeframe for approval of the short sale.
• You should be sure that you outline all the conditions and terms of the short sale as contingencies of the sale.
• You should send a letter to the seller requesting written confirmation that the lender has received the hardship letter and any other documents pertaining to the short sale application.
• Remember that there is a very good chance there will be more than one offer in a short sale.
• Get a home inspection, even though the lender will require it to be an “as is” sale. You still want to know what you’re up against in terms of repairs or updates to make the home habitable.
If the short sale has not already been approved it can take up to three months to get a final answer from the lender and the answer can be “no.” If you don’t have any time constraints there are some terrific short sale deals out there and you may find the perfect home through a short sale. Just be sure to work closely with your Realtor on a short sale purchase. This is one sale where a knowledgeable, experienced real estate agent is essential. There is risk in a short sale. And don’t use the seller’s agent. They will represent their interests, not yours. Get your own Realtor who will work on your behalf.
Buying a Hilton Head Foreclosure
A Hilton Head Island foreclosure can seem like the deal of the century, but it can also be a house of cards. You don’t want to let a good deal pass you by, but you also want to be aware of the situation.
Here are some tips to guide you if you are thinking about purchasing a Hilton Head Island home in foreclosure.
Budget Carefully. A small price tag isn’t necessarily a good deal. When budgeting you need to factor in the cost of repairs. Some foreclosed homes are in poor condition, either because of the length of time they had been empty or the homeowner’s wrath at being foreclosed. If you are going to purchase a foreclosure, be honest about the amount of work and the amount of money it will take to return your Hilton Head home to livable if not pristine condition.
See the House For Yourself. Buying a Hilton Head home sight unseen is unwise. Remember, this is an investment, one you will have to live with for a while. If you don’t live in Hilton Head Island, ask your Realtor to look at the home for you. Also, get a home inspection done so you know exactly what you’re getting into if you end up making an offer on a home in Hilton Head Island.
Check Out the Neighborhood. Balance the cost of purchase and repairs against the likelihood that you’ll get your money back down the road. Fortunately, all Hilton Head Island homes are a great investment, but you do want to make sure you don’t need to invest more than the house will be worth. If there is extensive structural damage in the home, you could quickly be in over your head.
How Long Has It Been Empty? A house loves to have people in it. When they are vacant for a period of time, they can naturally start to break down. After a time, the plumbing seals dry out, sewer gas may get backed up in the lines and other ailments can crop up because maintenance has not been performed regularly. If the home wasn’t winterized properly this can become a factor as well, leading to leaks behind the walls and mold.
Look At the Landscaping. If the trees and bushes have been neglected for a while roots may have started to creep into the foundation, the concrete and the pipes. Look for signs that nature has begun to reclaim the home. It could lead to hefty, hidden expenses.