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SO YOU ONLY WANT TO BUY IF YOU CAN NEGOTIATE THE SALE HUH? (let me think about that one)

By Malik Crichlow

Real Estate Broker/Owner with GoodBuy Homes NJ Essex & Union County Real Estate specialist 0791869

April 21, 2011 06:44 AM

As a New Jersey Short Sale Specialist I encounter so many home owners that are trying to hold on but

the rope is starting to break...

There is an abundance of information out there and home owners are uncertain on which way they should turnIf you list and sell a lot of Short Sale Listings like I do; then you may have been approached by these New Age investors who want to purchase your listings but ONLY if they can negotiate with the bank directly. I personally have mixed feelings about this practice; they promise a full 6% commission to the broker with a pledge to do whats best for the home owner, but I am not sure if I am buying that. First off in almost every transaction that involves Real Estate; you have two constants...

Number 1: The Buyer wants to pay as little as possible for the house

Number 2: The Seller wants to make the most money possible on the sale.

So the question remains; if the buyer is negotiating on behalf of the seller; is there a middle ground??

I have been contacted by several vendors promoting their services and I question how could this be done where it favors all parties? For starters if a home owner is facing foreclosure; whatever can be done...should be done to avoid that devastating event. So if this is an option available to you or your clients then you may want to considered it. But I also know that for every one GOOD agent there are 5 Bad ones and I am sure the same odds carry for people that look to engage in this sort of practice and ultimately; it is a roll of the dice My concerns are how do you gain clarity and decide as an agent if this is something you can use in your everyday business or a home owner; who is trying to decide if this is the right option for you?

Here's an example on how it generally works, it is considered an A B C transaction.

Seller does a deed transfer with Investor; this allows the investor to discuss options with the bank and negotiate the sales price.
The investor buys the property via an option contract (usually all cash or transactional funding)
The investor then sells the house to a final end buyer for profit who will be the new owner at the end of the day

***** Understand that they are investor and will be trying to negotiate for the lowest amount possible and looking to resale for a profit. Also keep in mind, that in a short sale the seller will net zero at the end of the day *****

Again I am no advocate for this practice nor am I a critic; I think in this market it will take some creativity to get these distressed properties out of the market place and get us all back to a sense of normalcy. So as long as you are working with a company that is truthful and provides full disclosure then it may all be fine. Some of these companies will have you sign over your deed,(thus your rights) only to have been accused of holding homes and their owners hostage. Home Owners remember; it is advised to always have a lawyer involved when doing anything that involves Real Estate, because one wrong stroke of the pen and you can be out on the street before the ink drys. I have heard horror stories of people doing some really misleading things to people and home owners ending up out in the cold because they did not know what they were signing. Again always have full disclosure along with understanding when it comes to Real estate transactions.

As a Short Sale specialist; I know first hand how much of a hassle it is to deal and fight with these banks, some of these deals are like pulling teeth...but don't choose this option or put your Sellers at risk unless you know the facts. I have met some people that seem to be real honorable in their approach and if ever needed those would be the people I reccommend any of my clients too.

REMEMBER IT'S HARDER TO DO WRONG, THEN TO LIVE RIGHT!

The internet provides so much info, sometimes too much but do your research before working with these types of companies. One good source is the Trust me if their there, then you may want to move on to a more credible company.