Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 1 of ?

Since about a quarter of the home sales in Southeast Michigan are short sales, I thought I should start posting more articles about some of the tactics my buyers have been using when negotiating with a seller.

Basically a short sale is when the seller owes more than the house can sell for and is unable or unwilling to bring the difference to the closing. In those instances the seller is asking the bank to reduce the mortgage payoff in order to produce clean title at the closing. Please go to my short sale page for more detailed information.

One thing a buyer needs to remember is that the seller is walking away from the sale with nothing but their personal property and bad credit. There is also the possibility the bank may reserve the right to sue the seller at some point in time after the closing- I believe they have up to 10 years in Michigan.

Why does this affect you, the buyer? Because the seller is the one you negotiate the sale with and the seller's motivations on a short sale are different than on a normal sale. It's not all price. Remember- the seller is not walking away with any money, so we need to explore other options to make your offer attractive to the seller. I think about 75% of my sales this year have been multiple offer situations and unlike the old days the highest bid may not be the best.

So some basic advise- don't ask for appliances. Don't ask for the boat or the dock. Don't ask for anything that is not being offered in the listing. Remember- the seller is walking with nothing but bad credit. Even if you offer full price the seller may still reject or counter your offer or choose another offer. I would hate to have someone lose a house over something as petty as a stove.

Another tactic that worked for me recently when in a multiple offer situation- we offered 45 days free possession after closing. According to the listing agent that was the deciding factor for the sellers, and my buyers are getting a home they love at a terrific price.

Please come back for more negotiating tips. Or check out my Home Buyers Blog for Southeast Michigan Real Estate.

Jackie Hawley
Keller Williams Realty
cell: (248)736-6407
email: Jackie@JackieHawley.com
web: www.MiRelocation.com