As a Northern Virginia Short Sale Agent, I can tell you that one thing that speaks louder than anything in a Buyer's offer is their Earnest Money Deposit, or EMD. It tells a Seller how serious you are about their property, and whether or not you are willing to wait for Short Sale Approval.
Money talks louder than you, Mr. & Mrs. Buyer, realize. Let's take the following scenarios:
1. An all cash offer on a Short Sale written at 130% of list price. No appraisal contingency. Earnest money deposit is 1% of the sales price. Further terms explain the EMD will be deposited upon delivery of third party approval.
2. Another all cash offer on a Short Sale written at 115% of list price. No appraisal contingency. EMD is nearly 10% of the sales price and deposited at ratification.
Who's a more serious Buyer? #1 or #2. If you guessed #2, you would be correct.
By depositing 10% of the sales price upon the Seller accepting the terms of the Short Sale Contract, the Buyer is saying, "I'm willing to wait for this property." They are serious. They will wait for approval and they've put 10% in an escrow account to prove it.
Buyer #1 is playing the Short Sale Contract like a lottery ticket. For an all cash buyer, 1% of the sales price is peanuts. Furthermore, saying the money will only be deposited into an escrow account AFTER bank approval is likesaying, "I'm writing offers all over town because I can. Whichever one gets approved first is where I'm depositing my money. I'll withdraw the numerous other Short Sale Contracts when that happens. What's anyone gonna do about it? I didn't deposit any money?"
If your intention is to wait patiently for Short Sale Approval, and NOT write offers all over town, step up and put yoru money where your mouth is. It's the only way to be taken seriously.
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