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As a disclaimer, I have avoided short sales from the Buyer side like the plague. Why? Well, in my particular market (high rise condominiums) there is not a huge difference in the homes. High rise buildings are built in "stacks" for the most part. That is to say, 1520 looks like 1620, looks like 1720......you get the picture. So, to pursue a short sale listing would usually require two very important items for my Buyer: Time and a Great Deal. If we don't have both, we look for other options, be it a foreclosure (the deal) or a well priced listing that is not in a distressed sale. Most of my Buyer's have not had the time. They want to buy, and buy now. Fair enough.
All cash ( I won't mention the offer price - but it's good) NO closing costs or other concessions. We are loving this offer and can see the sails rising on the ship! Oh wait, what's this special stipulation you've added?
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25 Comments on It's A SHORT SALE! Do You Know What That Means?
I just stay away from them if at all possible. I make sure my clients know that a short sale will most likey take a very long time and if they are in a hurry, then short sales are not for them.
Lenn: How right you are. Agents need to educate themselves to represent their buyers....or maybe they shouldn't represent them!!
Broker Bryant: Perhaps still in denial? Living under a rock?
Gary: Let's hope it's not a FEW years!
Ann: You SHOULD sing about miracles like that one!
Patricia: It might be understandable the public does not undertand the process...but we as professionals...come on!!!!
Brenda: It's all a matter of counsel and education. If it's an incredible home, it's might be worth the wait...as long as the buyer knows the process, and what little control we have over much of it!
Welcome to my world, Tom.
The only way I survive the madness is to have enough short sales churning on any one day that the little setbacks and irritations on the buying side are too small to send me running into the street ripping out my hair.
I know the song, much as most here as well. Buyers need to understand - they are not in control!
Sounds like my day yesterday - Similar situation. We countered with less concessions ( I KNOW this lender will not accept over 3%) and 45 days to approve. Were met by arguments and the same March 28 demand. COME ON! Too bad the buyer is way over asking and simply because his agent does not want to understand, the house will likely end up with a different buyer. Sheeesh.
I agree with Lenn. In Brentwood and Santa Monica market, I represent,I have no problems on the buy side and saying that the contingencies start when the bank approves the contract with of course there addendum's. I do know short sales and do know the process, it doesn't matter the mental idiot at the bank will do anything he pleases. As a listing agent of a short sale I have stopped hiring a negotiator and paying up to 25%,, why??? I can write an email to this dunce and get the same non answer or the same ridiculous one. There is no negotiation only banks dictator demands. Who said this process was good for both sides, the banks surely don't
I have been trying to learn my way around here and all the information is so awesome and very helpful. I guess I should introduce myself but don't know what to say about me:-) Only 4 years in Real Estate and loving it. I came in the industry at a challenging time but that helped to shape me. I still ahve a lot to learn though!
I had a similar experience as Thom about a week ago. I was really surprised at how little agents do know about the short sale process and won't take the time to become educated. I love the post! And thanks for sharing.
Thom, many times these words slip from my mouth to the selling agent, "You DO know this is a short sale, right?" When there's silence on the other end, I know my sellers and I are in trouble. As a side note, I prefer negotiating my seller's short sale with their lender. I'd rather negotiate with the negotiator than negotiate with the in-between negotiator. :)
Thom - Congrats on the feature! You would think ALL agents would educate themselves on short sales, but as you found out plenty of them haven't and probably won't.
All I can say is "WOW!" How can anyone not know what a short sale is? I am not an expert in short sales and generally refer them out. I would only bring a buyer with a ton of time and patience to a short sale listing. Most of my buyers are not in that category. Which is sad - because these guys need to sell.
Thom...
It's tough for both listing agents and buyer's agents. Nobody knows what will happen until it happens.
I had a short sale listing recently and when I told a buyer's agent that we had extra paperwork because it was a short sale he said "WHAT DOES THAT MEAN?" And he's been in the business for a while. He's no newbie.
A lot of people like to yell at others when they are insecure in their knowledge of a certain subject. I am convinced that the agent that yelled at you is missing part of his/her brain.
HAFA certification should be a requiremnet..a must for all realtors...this will expand the knowledge and be a part of the solution and not the other way around.
Cash is not always king. The banks don't hurry when reviewing the short sale offer, no matter how good it is. Frustrating, but the buyer's agent should really be doing a much better job of edu-ma-cating their client.
Short Sales are not for the faint of heart - for sellers, listing agents, buyers agents or buyers. We specialize in short sales and it never ceases to amaze me the things I see written in contracts. Just the other day I got an offer: terms were (1) seller to pay for $1,000 of repairs, (2) seller to pay for ALL lender required repairs, and (wait for it) (3) an As-Is Addendum.
Not sure what the buyer's agent was thinking on that one. Only thing I can say is "they don't think".
Thom, I thought on the cash offer that the buyers were going to say that they were using a HELOC to finance. I always love that one.
It never ceases to amaze me. I'm no expert and by all standards I am new to the business (1 year next month) and even I have a basic knowledge of short sales.
Elizabeth: Or maybe I'm glad not to have to many Short sales.....I can't imagine being on the Buyer's end with an agent who "claims" to know what they are doing.....
Gary: But we need to educate our Buyers!!!!
Minna: As long as you get YOUR Seller a Buyer, you have done your job!
Robert: By allowing contengincies to start at bank approval....the buyer really has no obligations to perform, and could really walk anytime they see fit. If the buyer were to walk with NO due diligence or contengencies, who would get the earnest money?
Linda: Just jump right in!
Pamela: We as agents cannot negotiate on behalf of our Sellers. It's against license law. Only a licensed mortgage broker may negotiate. But our attorneys seem to have some muscle.
Michelle: Heavy sigh.....
Ruthmarie: WOW back!
Richard: But we must act as we should. This is a contract between a Buyer and a Seller, not a Buyer and a Bank. And a contract without any specific performance is really not a contract at all.
Erica: Amazing!
Aaron: ROFL
Carla: Amen!
Christianne: And to think that Buyers are depending on agents like this to represent them.
Barb: NO WAY!!!
Tracy: I think in this business you learn all the way to the end of the race....
Believe it or not, even in my market where short sale listings dominate over 50% of the listings - agents still don't know what they are nor do they counsel their buyers with what they have to go through. NOW if I were a buyer's agent and you explained the story - I would be chomping at the bit to get my buyer's offer in! If you have a negotiator and a BPO done with out an offer - with a price resulting. I would be all over it like flies on honey! Sounds like this one will be a success!