Smart Buyer Guide Category

Short Sale Guide St Louis MO

Buying a Short Sale in St Louis. 

Many first time home buyers are looking for a deal on a home, and are attracted to the opportunity to get at “deal” on a short sale.  If you are looking for a home, it is important to understand what a short sale is, and if it is right for you. 

Why are short sales popular in St Louis?

St Louis like many cities has seen a decrease in home values in the past two years.  Although not as large of a decline as most cities, the St Louis metro area has generally seen a 10 to 15 percent decline from the market high in 2007. 

A short sale is when the seller owes more on the property than it is currently worth.  In order for a short sale to take place, the owner must demonstrate that they can no longer make the payments, and do not have any liquid assets to keep making the payments.  Not ever property owner will qualify for a short sale just because their property is worth less than their mortgage amount.  

Buying a home as a short sale is not for everyone.  True, if you are a savvy buyer, have patience and a good realtor, a short sale is one of the ways you can buy a home in St Louis below market value.    

Short sale Buying Facts:

SHORT SALE OFFERS. The higher the offer the better your chances of getting the offer accepted from the bank.  In St Louis, it is my experience that offers that are for 90% of the current values are generally accepted from lenders.  We have closed deals for buyers below this percentage,  however those are typically in areas of St Louis that have had more rapid decline in home

Tip: Throughout St Louis, Manyshort sales and bank owned properties are purposely marketed at below market prices.  If it is too good to be true it probably is.  This tactic is done with the intent to create a buyer frenzy, multiple offers, and sale prices back to the true market value.  It’s ok to pursue these properties, however let us help you set the maximum amount you want to pay for it, helping you keep the emotional level in check.

Will there be multiple offers on the property? Like any purchase, Buyers should assume there may be multiple offers even in this buyers market we are in.   If you really like the home, be prepared to present a decent offer of what the home is worth to you.     We can help you analyze what that offer is based on the homes price, days on market, and other factors.

What is the right price to offer on a short sale?  Once again, the right price is what a buyer is willing to pay for the home in today’s market.   We can help you analyze all the comparable homes in the area establishing a fair value for the home you are interested in. 

Will the bank accept my short sale offer?

There are many factors that a bank will look at when they review our offer.  They will typically consider the condition of the existing loan,   the properties condition, the strength of the offer, closing time, and general conditions as the offer, such as price, financing, and other contingencies.   Don’t worry; we will help you put together a compelling offer that the bank will accept.

Is there any warranty with a short sale home..

It is common throughout the St Louis market for both Short Sales and Bank foreclosed properties to be offered in their current as is condition. This as is condition generally means that the seller and lender will not make any repairs to the home prior to closing.   However we always recommend that you get a building inspection, even though the seller will not pay for any corrections to the home.  You want to know what you are buying, and if there is something major wrong with it, you need to know.  We will help you with this process, and have several inspectors we recommend.  Importantly, we will help you structure the purchase offer so you have a right to an inspection, and ability to cancel the contract if you find something major wrong with the home.   

For more information on buying a home as short sales, foreclosure or finding unlisted bank owned properties, contact me directly

Jeff Camilleri – 314-480-3801