Top 5 RE Agent Obstacles to Short Sale Success
- Commissions are discounted by lenders
- Lenders don't want the package unless they have an offer
- Execution & Accurate Valuation of the Interior BPO
- Have a buyer but the short sale process takes too long so they buyer walks
- Wasted time negotiating with the lenders when they should be promoting their properties and/or themselves.
This is How I (an Investor) Help RE Agents:
#1 Problem = Commissions are discounted by Lender
#1 Solutions
- Investor can guarantee a full commission on every deal that closes
- Agent markets the property to find the end buyer
- Listing Agent & Buyers Agent receive 3% commission each
- Agent who refers the property eligible for double commission - you make more money.
#2 Problem = Lenders don't want the package unless they have an offer
#2 Solutions
- Investor will make an offer on every short sale property the agent has listed as long as it meets our criteria
- Property must be in our "sweet spot":
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-Market value of $350,000 minimum, no maximum (Vegas $300k+)
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-$200,000 above Median House Values preferred
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-Move-In Ready - no rehabs or fix-ups
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-Multiple mortgages with a large 2nd mortgage.
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-No Condos, Townhomes or marginal properties.
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-Seller must be at least 30 days in arrears on the mortgage or about to be.
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-Sellers must want to sell their home and move on.
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-Sellers must be cooperative on the collection of the short sale information required.
- Investor offers immediately so it starts the short sale process
- Due to market - Better to start out low - we can always come up in price
- Once BPO is completed the investor will negotiate with the lenders and raise the offer price through negotiations
#3 Problem = Execution & Accurate Valuation of the Interior BPO
#3 Solutions
- Investor will perform BPO prior to lender BPO/Appraisal
- Investor will drive the price down to a "sellable" number
- Investor will follow-up with the BPO Agent to get the value
#4 Problem = Have a buyer but the short sale process takes too long so they buyer walks
#4 Solutions
- The Short Sale process is already started and BPO is completed
- Investor will coordinate with agent on when an offer can be accepted
- Investor will coordinate with the agent on the listing price depending on negotiations
- Once buyer makes an offer it can be accepted or countered immediately
- This ensures that when a buyer writes a qualified offer that is accepted the transaction can close in a timely fashion (30-45 days)
- Closing takes place in 15-45 days instead of 3-4 months because the package has already been submitted and the BPO already completed
#5 Problem = Wasted time negotiating with the lenders when they should be promoting their properties and/or themselves.
#5 Solutions
- Agent gathers paperwork from the Seller - that's it.
- Investor handles all the negotiations
- Investor will perform and complete the BPO with the Agent
- Investor will "sit on hold" all day if that's what it takes
- Agent will get twice weekly status updates via email
- Agent spends time doing what they do best - marketing and promoting themselves and their houses.
- Agents can continue to find more listing and buying opportunities
- Investor does what it does best which is BPO's and Negotiations
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