In most Real Estate transactions there is a buyers agent representing a buyer and a sellers agent representing the seller. In a traditional purchase, the home inspection is generally done within the 1st week or two after a contract has been executed by both the buyer and seller.
This is know as a “home inspection contingency” and allows the buyer and their home inspector the opportunity to carefully look over the home for any potential structural or mechanical defects.
If the buyer does not like the results they generally can exercise their right not to move forward with the purchase of the property.
When to do a home inspection for a short sale property can sometimes be a bone of contention depending on which side you are representing in the transaction.
Buyers of course do not want to spend money on home inspections when they do not know for sure whether their short sale offer is going to get approved or not. In many short sale offers I receive, the buyers agent will ask in the offer to let the buyer do their home inspection after the short sale approval letter comes from the lender.
As a Massachusetts short sale listing agent however, I need to protect my clients best interests. Allowing a buyer to wait until after the lender’s approval to do a home inspection would give the buyer the ability to walk away far too late in the transaction and could force the seller into a foreclosure sale because they would not have enough time to find another buyer.
In addition most short sales are “as is” transactions. The reason the seller is doing a short sale to begin with is that they do not have enough money to continue paying the mortgage. Buyer’s need to understand going in that the home inspection is not going to be an opportunity for them to present a laundry list of repairs they want the seller to remedy.
Lastly, the buyer is not going to be able to negotiate any costs of repairs if the home inspection was completed after lender’s approval. When the lender or lenders approves a short sale it is based on a definite dollar amount they will be realizing at the closing and they do not allow for further negotiations.
If the home inspection is done up front in a short sale it could be possible to negotiate a credit prior to the offer being submitted to the lender.
For all these reasons it makes sense that the home inspection is done prior to short sale approval!
As the number of Massachusetts short sales has grown so has the number of unqualified Realtors who have started to represent home sellers. If you are a Massachusetts home seller and need to do a short sale it is of the utmost importance to realize that not every Realtor is qualified to represent a short sale!!
Many consumers make extremely poor choices by working with agents that don’t have a lick of experience with getting short sales approved. Picking a good Massachusetts short sale Realtor is critical to your success.
There are many errors I see constantly by agents who are representing sellers in short sales throughout the Metrowest area. If you are considering doing a short sale I would highly recommend reading some of the short sale articles I have written below. The articles cover some of the considerations as well as mistakes you want to avoid when trying to successfully complete a short sale.
As a home seller you need to remember that tons of short sales across the country do not get approved and end up in foreclosure. Sometimes this is due to the Realtor not properly handling the sale. There are also debt removal and tax consequences discussed below that you will want to be familiar with.
- Questions to ask a short sale listing agent
- Short sale debt removal
- Short sale tax consequences
- Massachusetts short sale specialist
If you are needing to complete a short sale of your home or condo in Ashland, Bellingham, Framingham, Franklin, Grafton, Holliston, Hopedale, Hopkinton, Medway, Mendon, Milford, Southboro, Westboro, Natick, Northboro, Northbridge, Whitinsville, Upton, Uxbridge, Shrewsbury, Worcester, or Douglas Get in touch! I would love to interview for the chance to represent your best interests.
I am successfully completing short sales through out the Metrowest Massachusetts area. So far, knock on wood, I have a 100% success rate for short sale approval!
If you are outside of the Metrowest Massachusetts area and need to do a short sale please feel free to contact me and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing! I have referred short sales to other Realtors all around the country.
About the author: The above Real Estate information on when to do a short sale home inspection was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at firstname.lastname@example.org or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 24+ Years.
Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!
I service the following towns in Metrowest MA: Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.