7 Things You Should Know Before Buying a Short Sale House in Las Vegas

See also About Short Sales Houses in Las Vegas.

  1. There are some good deals with short sales in Las Vegas. However, be aware, that the seller’s bank(s) will do a market  analysis on the property, called a BPO or an Appraisal. If the agreed upon offer is much lower (and sometimes any lower) than the market price, the bank will decline or ask the seller to renegotiate the sale up to market price.
  2. Your due-diligence period usually starts AFTER the seller’s bank approves the deal. You won’t be out inspection costs only to find out the deal is dead.
  3. There can be multiple lien holders in a short sale that need approval from not just “the bank.” There can be a 1st mortgage, 2nd mortgage, equity line, mortage insurance, and perhaps, the IRS.
  4. Most short sale purchaes are off-limits to the seller’s family, friends, business partners, and often tenants.
  5. Most banks will require the seller to sell the home “as-is.” So don’t ask for repairs in your offer. However, this doesn’t mean that you can’t get out of the deal if the inspection reveals things about the house that you don’t like.
  6. You could wait 1-6 months or more for an answer on a short sale. And, that answer could be no. If you are not prepared for that, a short-sale may not be for you.
  7. In April of 2011, short sales accounted for 23% of closed sales.