A short sale, or pre-foreclosure sale, is a downtown condo for sale that is being sold for less than what the owner owes on the mortgage. In a short sale, the seller does not have the money to make up this difference, and the bank has agreed to accept less than what is owed. Short sales are different from foreclosures as the owner still has the title to the home and hopes to avoid the credit damage that a foreclosure guarantees.
If you are considering buying a short sale, keep in mind the transaction is very different than buying a regular home. Short sales come with many potential pitfalls for buyers because you are not just negotiating with the seller, the lender must also accept your offer. Here’s what you should keep in mind.
Understand what you are getting into.
A downtown condo short sale takes a long time to close and you may be waiting for months to hear if your offer was even accepted by the bank. If you’re in a rush to move out of your current place, a short sale probably isn’t your best option.
Not all short sales are great deals.
While the Boston downtown condo may be listed at a steal, this does not mean the bank will accept the list price. The property may also have hidden damage. When the seller is in financial trouble, they don’t always keep up on property maintenance or even day-to-day responsibilities.
Work with a real estate agent who has experience with short sales.
Your real estate agent in downtown Boston can help you make sure you aren’t wasting your time by finding out why the seller is attempting a short sale and performing a comparative market analysis.
Don’t skip an inspection.
An inspection is an excellent investment when buying a short sale. Get repair estimates for any problems discovered and consider calling specialized inspectors to check for expensive issues like structural damage or termites.
Make a strong offer.
You are more likely to be accepted by the lender if you have a strong offer. While lenders prefer cash offers on short sales, you can still be approved if you have financing in order, a large down payment, and you are willing to close at any time. A short sale may not be a good choice if you need to sell your current place first or you have other contingencies.
Still searching for the right place to call home? Check out our inventory of high rise condos for sale in Midtown. For more information please call 617-720-5454.
Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs
In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.
For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.
Charles River Park
Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.
Ford Realty Inc
137 Charles Street
Boston, Ma 02114
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