When you represent a Buyer Looking at Short Sales : what to do or not do

Part one :

I do a lot of short sales... well not hundreds but a few  at the time and have closed a few ( the ones that don't clsoe is because the buyer walked away right before the approval came back ). I know a lot more about the process from experience now than some agents that have not had any done but are working with buyers. Nothing wrong with that .. buyers agents do a good job and we need them. here are a few point to keep in mind :

• However since this is Phoenix 2009 if you work with a buyer in certain zip codes you will find nothing but short sales and REO's .
• Soem REO's are so bad they can't be financed and need a lot of basic repairs to make it livable.
• Most short sales in in good condition,some, like mine are in pristine condition and have the best upgrades on the block :)
• I would like to  stress that agents representing buyers that are looking at short sales need to have had a few done themselves and be less hissy about the process and towards the listing agent.( it is what ir is and we have to work with whar we got )  If you come across as being a complainer than I will not want to work with you or your buyer as I know you will not be dedicated to the process and might move on to something else just before we get it done afther hours of work that I have to put in for your buyer ....  if the home is in good condition is Worth the wait as you will get them a home in a much better condition than a trashed ABANDONED REO'S for about the same kind of money .
• Just make sure you write an offer that can be backed up by a BPO value for the area.  I have to write a blog about this subject.
• Do not ask me if the seller is Negotiable ( my answer is a smart one :  sure he wil sell it for 1$ but I don't think the bank will take that .. What is he negotiating at this point ?  We are trying to prepare an offer that bank will accept based on recent active and sold comps that are similar or the same like this one in size location and amenities .... keep in mind your "prize" for the wait is the upgrades in the home or the condition of the home. Please come across as being well educated in the subject and ask relevant questions.
• if I tell you that this is a preapproved seller it means  just that: the bank as looked at the sellers financial situaton  and that he is approved to do a short sale but the  price  and offer still needs to be approved. Remember is not always the price. is the price and terms. Could be terms as well as proof of funds etc... Show me how good the client is just like you would on a normal transaction and remember now you have another set or sets of eyes looking at this offer and your buyer's buying power.
• Send a compete offer and do not give me a definete time frame to respond; I will keep you informed and on the look  ... ok( I agree 90 days with no answer or fallow up is not acceptable)  but I usually can tell in 14 days or sooner what the response will be now if we need to have the second answer as well then there is another few days as most answer in less than the first some In 3 to 4 days after the first has approved .
• Also just so you know some Fannie Mae deals take a long time to respond even if they are foreclosure . .they are GSA .. gov owned and work at the speed of government.
• As a general rule if the house had a notice of trustee date scheduled it will move even faster to get approved by the bank ... a lot faster ..
• Educate your buyer and by all means do not discurage them if that is the house they like jsut because you want a faster paycheck..  remember theh buyers will be happier with the home that is in the better condition.

If I promised 3 % on the deal I will do my best to honor that and will go back to the lender and negotiate for that to be paid as well.  I am represening the seller and not the bank; my job is to sell it before the foreclosure takes place.

I will write more in part 2

 

Elena Martinovici Designated Broker-  Phoenix , Arizona

Short sale, BPO and REO

www.sonoranhomes.net

602-321-1273