If you are house hunting in Las Vegas, you may have noticed by now that many of the best-priced homes are listed as short sales. A short sale is a when a home owner that currently owes more on a home than its market value receives permission from their lender to sell the home at a loss. In a short sale, the bank will sign a document known as a deficiency waiver that agrees not to pursue the homeowner for the remaining balance once the sale price is applied to the mortgage. Because the bank is taking the financial hit, they are heavily involved in what the final sales price is.
So does that mean you can negotiate on the sale price of a short sale listing? Like with many legal issues, the answer is “it depends.”
IS THE SALE PRICE FOR A SHORT SALE HOME NEGOTIABLE?
Typically, banks will require approval to even list a home as a short sale as well as final say on if the agreed-upon price is accepted. In most cases, the bank won’t make that final decision until after they have the value of the home independently confirmed by a neutral third party. This process can take months.
In other words, regardless of the price you agree on with the homeowner, there’s always a chance the bank can pull the rug out from under you in the future. And just like with standard home sales, there can be gamesmanship on the part of the seller. Some sellers start with a low price with hopes of starting a bidding war. In some cases, a home can be listed by a realtor who doesn’t have the authority from the homeowner to accept a full asking price offer.
So while there can be major impediments during the short sale process, there is no hard and fast rule that prevents you from making an offer that is below asking price. Just be aware of the fact that anything that looks too good to be true probably is. While short sale homes have sold for 20% below market value, every sale is different. That’s why it makes sense to have the kind of legal guidance you can only get from a Nevada short sale attorney. Your attorney can help with more than just explaining the legal ramifications of your offer or help you draw up a contract. Your attorney can also provide important insight into the short sale process.
HOW A NEVADA SHORT SALE ATTORNEY CAN HELP THE HOME BUYING PROCESS
If you are a potential Las Vegas home buyer considering a short sale, having an experienced attorney by your side may help make this complicated process go as smooth as possible. Buying a home is stressful on its own, but an attorney with a track record of helping their clients obtain the home of their dreams can be a major stress release. To discuss your options with attorneys that are well-versed in the laws surrounding Nevada short sales, contact Vohwinkel Law today.