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With Terry Story, 28-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
The climate today is definitely not as it was back in 2006-2008 when the real estate market was spiraling downward and many people found themselves underwater and couldn\u2019t afford to live in their homes. One way out of that bad situation was to sell short of what was owed on the home and then appeal to the bank for loan forgiveness.
Terry says that, although not nearly as common as back in the days of the big bubble burst, short sales can still be found in the today\u2019s real estate market.
A Bargain or a Big Mistake?
Before succumbing to the lure of the great buy, Terry has some words of caution:

* Keep your emotions at bay while you assess the true value of the home.
* A house in short sale has probably sat there for a while, probably not well-cared for.
* Check for signs of neglect such as termite damage, water damage, appliances in disrepair, etc.
* Do the home inspection immediately, even before waiting for the bank to accept the offer.
* Investigate all legal and insurance information in advance.

What looks at first sight like the deal of a lifetime could turn out to be a big mess, so proceed with caution.
Terry\u2019s Real Estate Survivor Guide
Question #1: When does an offer become binding?
If a buyer submits a strong offer that, after a length of time, is rejected, does that potential buyer have any legal recourse?
Terry\u2019s answer is an unequivocal no, unless there is some written contractual relationship between buyer and seller, and that stands even if the listing agent conveys unrealistic expectations to the buyer.
Question #2: When is a post-occupancy agreement needed?
If the seller remains in the house after closing (and is then technically a tenant) or the buyer moves in before closing, it\u2019s advisable to have a written agreement to protect against damages incurred either by fault of the occupant or act of God. So always be sure to have insurance and liability issues in place.