Imagine this scenario/timeline...
- Date Property Listed: January 1
List Price: $179,000
- 30-Day Showing Report reflects 2 Showings; No Offers
- February 1: Recommend Price Drop
New List Price: $169,000
- 60-Day Showing Report reflects 5 Showings; 1 Offer received (Investor Offer - Too Low, Countered, Dead!)
- March 1: Recommend Price Drop
New List Price: $159,000
- 90-Day Showing Report reflects 15 Showings; 3 Offers Received; All Countered and the final offer is executed (Subject to 3rd Party Approval) and submitted to Bank.
- Bank orders BPO: Result: $184,000 Your response? Yikes!!! Now what?
If you're working Short Sales, you've had this happen to you. You get a Short Sale property listed, get an offer, ratify or execute the contract, and submit it to the lender. Then what? The appraisal or BPO is ordered. Everything's running as planned, right? Wrong...the loss mitigation rep calls or emails you with a counter. Guess what? Their counter is so much higher that what you even had it on the market at. What the heck!!!
Here's a very important tip. First, it's important that you begin to realize something. I can honestly tell you that the banks are increasingly becoming more agitated and insensitive toward CMAs at this stage in the game, so Agents trying to pull this off as their trump card are going to find themselves more frustrated than ever when the loss mit rep isn't paying attention to the "real" comps. Over the last year, our team has been doing something that has surprisingly produced remarkable results in this situation. Most of you have access to the lockbox showing report, right? You may have Sentrilock or SupraKey, or something like this. Unfortunately, this will not work for a combobox, etc. If your Short Sale property has been listed for an extended period of time, even for 30 days, log into your lockbox service provider and print off a showing report from day 1 that the property was listed until the present. Make notations using brackets of what the price was at during a certain range of dates and provide this report to the lender/loss mitigation rep. We have found that the appraisal had over a 50% greater chance of being contested with this additional report, verses only a CMA. In the example above, we were able to show the lender that the value is certainly not $184,000, because even at $179,000, the property was only shown twice with no offers. This report was perfect evidence outside a CMA to show what our property is truly valued at. If it's not showing at certain prices and the bank's not willing to see the true evidence, then fine. They're about to take another property back on their books as an REO!
Want some great marketing tips for Short Sale properties? You are invited to attend our webinar next Thursday. Visit www.AmericasHomeRescue.com for more information and to view training calendar.
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