After months of negotiating with HSBC (one of the worst lenders in my opinion to deal with for short sales), we’ve got an approval on a St. Joe County house. Bill and Shelly were a referral from Bankruptcy Attorney Todd Redmond. How did we get the buyer to wait this long for an answer? Quite simply, they got an AWESOME deal because the house was priced right. You got last week’s newsletter on pricing it right, didn’t you?
Once you’ve got it priced right, it’s time to “list it right”. This is fairly simple, but is often missed, and if missed puts your client in a worse situation.
The listing agreement and the MLS should state “subject to lender(s) approval of short sale”. You’ll want to double check with your Broker and/or your Board of Realtors® to see if they require different language.
Don’t let the simplicity of this fool you – this is a critically important step. If you don’t put this wording in, and you get a full-price offer, and you don’t get the short sale approved, your client could be liable to pay a commission to they buyer’s agent (at best). At worst, the buyer may sue for specific performance and make your client sell at that price, which would require them to come to closing with potentially thousands of dollars.
Please don’t skip this step – list it right.
We got a call this week from Donny, who is in car sales. I think we all know what’s happened to that business over the last couple of years. His income has been cut in half and he can not longer afford his house payment. Donny purchased the house 2 years ago and because of the lack of home price growth in his area, he can’t sell it for what he owes and cover all of the closing costs.
Do you have any listings like this?
Do you have clients in Donny’s situation? Give me a call and we can discuss how we can solve this problem for your client while making sure you get paid. Don’t lose the listing and your marketing dollars to a foreclosure.
Next week I’ll cover one of the more common questions I get: “What if the seller has moved out or they plan on moving out?” Handling this correctly could mean the difference between making the deal work, and having it die much sooner that you thought possible.