One of the most common things I hear when discussing the pros and cons and cons and cons of purchasing short sales is the idea that “we’re in no hurry, we have time to wait.”
Which is absolutely fine as long as you’re prepared for the bank to say “no” at the end of the weeks and months you wait, or to give no answer at all.
Except that’s not the only risk that comes with waiting because, much as we might prefer otherwise, the world keeps on turning and the real estate business keeps changing while you’re in limbo. To whit:
1) The interest rate you were quoted by your lender when you wrote the offer may not still be the rate when the approval comes. Yes, you can try to lock the rate but it gets expensive when you’re trying to lock for more than a month … and keep in mind, you don’t really know when your closing date will be
2) For those north of the border, exchange rates continue to change. There’s a decided difference between 97 and 93 cents when you’re looking to exchange more than $100,000.
3) Home values continue to change. Will the home still be worth what it was when you made the offer a couple of months down the line? If you’re expecting the bank to move to your appraisal value down the line, you’re likely in for a shock.
4) Other offers might be submitted to the bank. There are ways to avoid this but not all agents use them all the time (and not always by their choice … exclusivity sometimes comes with a price.)
So many unknowns yet so many continue to chase these “bargains” … list prices based in mythology, logistics planted in purgatory …
[tags]Phoenix real estate[/tags]