Is Short Sale Right For You?

Though a Maui short sale sounds like an investor's dream, it may not be the right choice for all buyers. Before you make the commitment to purchase one, you need to decide what you intend to use your Wailea, Makena, Kihei/ South Maui real estate for – primary residence, second home, vacation home, retirement home or investment rental property?

For instance, purchasing Maui short sales real estate that you need to move into quickly may not be the best way to go. You could find yourself homeless because short sales can take anywhere from 3 to 6 months or more to get approved by the seller's lender.

For buyers who are not in a hurry to purchase and are looking for a long-term investment opportunity, a short sale is the perfect South Maui real estate investment choice.

Benefits of Purchasing a South Maui Short Sale

Purchasing Wailea real estate, Makena real estate or Kihei real estate is always a great idea during nearly any market. Maui is the best island in the world and right now, short sales and REO's are hot property choices among first time buyers and those who simply love Maui. Here are the main reasons why buyers are choosing Maui short sales:

– Short sales are purchased at discounted prices because the bank agrees to write off the seller's loan balance and accept the market value of the property. The buyer therefore gets to purchase a discounted property, and the seller gets to walk away not owing the bank any money and saving their home from foreclosure.

– Short sales are generally in good condition. Many just need some cosmetic repairs because the majority of the time they are either occupied by the owner or rented to a tenant. REO's are vacant and usually require more major repairs and often expensive remodeling.

– Less competition with other buyers for the same property. You are less likely to find yourself in a multiple offer situation (more than one buyer competing for the property at the same time) than if you were to make an offer on a REO.

The main reason is that short sales take a long time to close and there is no guarantee that they will ever close. So they don't appeal to as many buyers. REO's close quickly. Often within 30 days or so from the time the offer gets accepted, and buyers know they are going to close.

Work With a Qualified Maui Short Sale real estate Agent

Before choosing a South Maui real estate Agent, ask the agent how many Maui short sales they have successfully closed during this time. Since negotiating a short sale can be complicated, it is best to work with a qualified short sale real estate agent, who has experience in closing short sale transactions, and who will be able to explain and guide you through the short sale process.

An experienced Maui real estate Agent has established relationships with lenders and their loss mitigation departments, which will help to expedite short sale approvals and increase the odds of getting the short sale approved.

If you Do Not Succeed at First – Keep Trying

As long as you have the time and the dime, don't worry if you don't succeed at getting your Maui short sale transaction approved at first. Keep trying. Just move on to another short sale or another opportunity until you find the right one that works for you.

South Maui sellers are very motivated to sell their properties right now, short sale or not. So you don't need to waste too much time on one particular property.

Tips to Increase Your Odds of a Successful Short Sale Closing

Ignore all the myths you have heard about short sales, and you will be successful with your purchase. In fact, more short sales have been approved and closed recently because buyers have educated themselves on the process, negotiators are now more experienced and skilled at successfully negotiating with the lenders and lenders have changed their attitudes and are willing to work with their borrowers.

Buyers do not have to fear that they are guinea pigs in the short sale maze any longer. The process became common.

Here are some useful tips to increase your odds of a successful short sale closing:

– Find out the seller's motivation to sell. Get as much information from your Maui real estate agent as possible as to why the seller needs to sell.

– Ask if the seller has contacted the bank to find out if the property qualifies for a short sale. If the seller does not have a financial hardship or has assets, chances are the lender will not approve the short sale, and you would be wasting your time and your money.

– Ask who is negotiating the short sale on behalf of the seller. Is it an experienced escrow agent, a real estate agent, a real estate attorney or an experienced short sale company? If the answer to any of those questions is yes, then you have a much better chance of the lender approving the short sale.

By stacking the odds in your favor as much as you can and educating yourself about the process for Maui short sales, you will have a much better chance of closing your transaction successfully and finally owning your piece of South Maui real estate.