Short sales should I show them?

By
Real Estate Agent with Gold Key Real Estate

Short sales are a very interesting aspect of our business.   I would try but be prepared to wait for the bank.  It might take extra time to close the deal.  I wouldn't be afraid unless your buyers are in a tearing hurry.  Short sales are a way to get a property for a little less then market value.   I've been involved in a few.  Ask the listing agent

  1. have you started negotiation-  If it is already negotiated it will be easy.
  2. Make sure the price is realistic and not a teaser - I just showed a home that was listed at $199K but the bank wouldn't take less then $240K.  I was pretty annoyed and might have lost the customer.
  3. Pull title early and make sure there are no liens -  If they are make sure they are negotiated away
  4. Check tax liens -  Those are much harder if not impossible to negotiate.
  5. Find out if the house is in foreclosure -  You can ask the listing agent.
  6. Be prepared to wait.
  7. You will need a funding letter and/or proof of funds (for cash buyers)
  8. Do not let your client spend money until the bank approves the shortsale
  9. Make sure all dates of inspections etc are from bank approval not contract deadline

All this said it can be rewarding for both you and your client.  Don't avoid them just be careful.

 

I love the challenge of a short sale it is a way to help people avoid worse credit problems. Call or Email me with any questions.  www.debbieholmes.net.

Posted by

  Debbie Holmes

Gold Key Real Estate     Company logo

(208)761-2551 Email: d5holmes@msn.com

To search Boise Homes visit my website

 

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Tags:
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Rainer
102,732
Robert Huntsinger
Empire Realty Upland, CA - Full Service at a Discount
Empire Realty

Show them short sales, they will need to sell just like everything else, plus you work with the bank instead of an emotional owner.

Take care!

RJH

January 31, 2008 08:59 AM
Rainmaker
454,268
Wendy Rulnick
Destin FL Real Estate
Rulnick Realty, Inc.
Debbie,  I would prepare the buyer for two to four months wait.  That way, they'll be happy if it is only three months.  Tell the buyer up front that the bank will do an independent appraisal and/or a BPO so their offer should not be way out of line with true market value.   Wendy
January 31, 2008 10:21 AM
Rainmaker
88,900
Paul Moye
Broker, GRI, SRES
Benchmark Realty
Wendy gave you some good advice. Also prepare them to lose some cash in the process. Lender fees on their loan, inspection or termite fees if they move on a property. Short Sales are not for those short on time or cash
January 31, 2008 08:42 PM
Rainer
3,669
Demetria Scott, Baltimore, MD -- SRES, ABR
Long & Foster Real Estate

Debbie--

Thanks for the great post!  I really appreciate the advice!  The part about dating the inspections and other contract deadlines from bank approval -- rather than contract ratification -- was especially priceless.

January 31, 2008 10:15 PM
Rainmaker
169,128
Debbie Holmes
Gets the job done!
Gold Key Real Estate
I like short sales because it allows me to help people without taking advantage of them.  It puts me on a level playing field as the investors.  Some of who are honorable and others who are not.  There are many people who prey on people in foreclosure and make matters worse for them rather then better.  I can bring a little honesty and caring into a disturbing situation.
January 31, 2008 10:51 PM
Rainmaker
742,460
Alan Kirkpatrick
Alan in Austin
Austin Texas Homes

Debbie:

Good information. Sounds like you have been through a few. I have not dealt with one yet so this is great informatlion. Thanks

January 31, 2008 10:57 PM
Rainmaker
169,128
Debbie Holmes
Gets the job done!
Gold Key Real Estate
I had a lot of good mentoring from some people.  I also had a lot of assistance from my title and loan officers.  The mentors told me how to approach the banks and judgments.  It was a long but very interesting experience and I am in the middle of another one.   The most frustrating parts were reaching the bank on the phone.  
February 01, 2008 07:36 AM
Rainer
3,921
Will Weaver
House Help 101

Yes. You should show all the ShortSales as possable. For the following reasons.

1. Your buyer can get a deal. If he or she can be patient.

2. The seller can avoid a Foreclosure.

3. Thats the way of the market as of now.

 

When things turn around we all can get back to the norm.

Will

February 02, 2008 06:15 PM
Anonymous #9
Anonymous
Debbie Holmes
I agree unless the buyer is in a hurry.  Sometimes dealing with the bank takes time.   
February 02, 2008 06:32 PM
Rainer
7,475
Matthew Boughton
Realty World Pacific Northwest
Short sales are a pain in my you know what.  An agent in our office just received a response after about 60 days, luckly the buyer hung in there - but most will not.  If the banks would streamline the process it would really make it much easier for everyone involved.  Honestly I prefer not to show them or advise the buyer on the process and let them decide - most of the time buyer doesn't or can't wait and looks at something else.  You would think the banks would improve the process in order to reduce the foreclosures which I'm sure can be much more expensive than taking a small hit up front.
February 06, 2008 01:46 AM
Rainmaker
169,128
Debbie Holmes
Gets the job done!
Gold Key Real Estate
Yes they are a pain but it is a way to help a client who is in real trouble.  Since I list short sales I show them.  I do call the listing agent and ask if negotiations are started and if there are offers on the table.  Some agents do not know what they are doing.  I usually start the negotiation the day I take the listing.  Sometimes even before.  If the agent has not talked to the bank I am very reluctant to show that place.  I am showing a short sale today.  It is priced 50K less than the comps.  I need to see the condition....  
February 06, 2008 08:04 AM
Rainmaker
330,552
Andrew Monaghan
CRS, GRI, EPro Associate Broker
Your Phoenix Home Source
In our area there are a lot of REO properties where you can get a good property and avoid all the hassles of the wait and cost of playing with the Short sales.
February 06, 2008 09:28 AM
Rainmaker
169,128
Debbie Holmes
Gets the job done!
Gold Key Real Estate
Yeah but the people who lived there might have destroyed it.  Yesterday I went into an REO property that had no floors, no furnace, no kitchen.  It did have a sideways toilet and black mold.....
February 07, 2008 08:54 AM
Rainmaker
169,128
Debbie Holmes
Gets the job done!
Gold Key Real Estate
Short sales are worth showing just agent beware....
February 16, 2008 09:54 AM
Rainer
143,777
Gary J. Rocks
Werner Realty

Debbie

What choice do you really have? In some area's of the country 1 out of every three homes are short sales.

February 16, 2008 10:32 AM
Anonymous #16
Anonymous
NOVA
In a market that is flooded with inventory, why not just go after REOs?  Once a bank has some real motivation the best deals can be cut.  This gets rid of the second mortgage problem as well.  Empty house, motivated sellers, no emotions or undue waiting.
February 16, 2008 10:59 AM
Rainmaker
169,128
Debbie Holmes
Gets the job done!
Gold Key Real Estate
I have waited on REO's also.  The bank doesn't always act like they want to sell their homes.  Also they gave me a 30 page addendum written by their lawyer's that had to be read carefully and countered.  Plus they insisted on a 48 hour bump clause that kept my buyer nervous from start  to finish.
February 16, 2008 11:04 AM
Rainmaker
169,128
Debbie Holmes
Gets the job done!
Gold Key Real Estate
I like short sales cause it is interesting and challenging work.
February 17, 2008 10:20 AM
Anonymous
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Rainmaker
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Debbie Holmes

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