The market in the Leesburg VA area is mostly short sale properties now and until more banked owned properties come out on the market it is necessary you know how to navigate a short sale offer and get it to the settlement table. Get an agent that is either experienced in helping buyers close on them OR has been well trained. Why? Short sales are tricky for agents and if you are not aware of the issues that have been going on in the market you will not know the risks you are taking.
Short sales are listings where the seller owes more on the property than the current market value so when they sell it the proceeds will not cover the note AND the seller does not have the money to make up for the difference. The bank will often only consider a short sale once the seller gets an offer(that's your offer) to purchase. Approval by the lender can take as little as 30 days to longer than 6 months. That depends on the sellers cooperation with the listing agent and lender, the listing agents ability to price the listing correctly and submit all documents needed to the lender and the lenders ability to process the short sale in a timely manner. Some lenders are better than others and you need to know what banks you are dealing with.
Use a good buyers agent that can ask the right questions BEFORE you write an offer. The listing agent can make or break the deal and you need to get as much information as you can up front. How do you know the lender will approve it? How do you know if the agent will submit ONLY your offer to the lender for approval. How long will it likely take?
Once you have approval from the lender(s) you will need to do your inspections and get your loan approved, often within 30 days. Most lenders require the buyer to sign an "as-is" disclosure however you can still get a home inspection so you know what you are buying. My inspector will take an informal look at the property before we write and offer and then do a complete inspection upon lender approval. Your lender will not issue the loan on the property if there are significant issues on the home inspection/appraisal report. Appraisals are the big issue right now as low inventory leads to higher offers that then do not appraise for the purchase price. Either the seller has to come down on the price or you have pay the cash difference or walk away from the deal having lost all that time. Look at the market data to see if the comps support your offer price you are making. Short sales can be a good deal and settle fairly quickly if you have an educated or experienced agent helping you. With only 5 months to get it to close and get the first time home buyer tax credit you need to start looking now. I have a site dedicated to answering your short sale questions. Call me if you cannot find the answers. DianaGeremia.com and LeesburgVaShortSale.com703-587-5403
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