If you’re in the market to buy Florida real estate, then you’ve definitely encountered more than a few short sales. These can be appealing as they are priced substantially less than comparable homes on the market. However, buying shorts sales in Florida isn’t quite that simple.
In simplest terms, a short sale is when the owner would like to sell the home for less than money than he owes on the house. There happens to be an excessive number of them in Florida because of what happened to the Florida real estate market. Back in 2005, when real estate was at its peak, lots of people bought homes in Florida at a fairly high market value only to have those home values come down considerably within just a few years. Unfortunately, this means that most people who bought at the height of the market and wish to sell their house usually are forced to sell the home “short” of what they owe the bank.
As a buyer you may think this is a fantastic chance to buy a home at well below market value. And, for some it is just that. However, for others buying short sales in Florida is a nightmare. There are a couple of problems when it comes to buying one of these homes. 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, and this is where it gets tricky, just because the owner has accepted your offer does NOT mean that the bank way it works is the owner will present the offer to the bank and both the buyer and seller must then wait for the bank’s response. Unfortunately it can quite often take several months to hear anything back from the bank and when you finally do hear back from the bank they may reject the offer. 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 basically taken yourself out of the game for the moment.
On the other hand, you can find lots of great deals on these types of homes. 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 families and investors alike.