I’m working on lots of new short sales this winter with a variety of banks and clients. Short sales are some of the best deals out there for buyers who are capable of dealing with the process. Banks routinely approve short sales 25%-40% off market value. In order to get this discounts buyers should be prepared to wait 3-4 months from contract to closing and be willing to buy the property as-is. Also, expect some sort of counter offer from the bank during the process. Strategically, we often offer a lower price initially in order to be able to concede something to the bank later in the process.
Investors should be aware that there are often deed restrictions that go along with buying a short sale in order to prevent simultaneous closings or flipping. Some banks require the new buyer to hold the property for at least 90 days before it is transferred. If an investor plans to sell a recently purchased short sale to an FHA buyer they should be aware that they can only sell the property for a maximum of 20% more than they purchased it for during the first 90 days. Some exceptions may be granted if the property was renovated, but 2 appraisals will be required by the FHA buyer’s lender.
Currently Working on Short Sales with Both Buyers & Sellers in the Following Neighborhoods/Areas:
Benton Park (Cherokee Area)
Richmond Heights
Tower Grove East
St. Louis Hills
Soulard
Benton Park West
Gravois Park (Cherokee Area)
Banks Currently Working With: