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The Short Sale Reply - Don't just rollover and play dead

By
Real Estate Agent with The Wilk-DeShaw Group

So today we got an answer from the bank negotiator on one of our short sales.  We have it under contract for more then market value.  In fact, market value has dropped so much since the offer that we are under contract at 30% over market value.  CASH!  The negotiator came back with a counter offer for seller to contribute (10%), eliminate several of the closing costs to either be paid by seller or buyer as we agreed, and raising the selling price by 20%.

I didn't just roll over.  This guy is a $10 per hour robo reply service.  I replied with comps, stated the outcome if they didn't accept the offer, and said, no, original offer stands.

2 hours later:  Ok, bank will cover all those costs.  No seller contribution.  But selling price increased 10%.

What part of no don't you get Mr. Negotiator?  No means no.  You lose as does everyone else if you refuse this offer.  Foreclosure hasn't been started and with our new law here in NV you'll be facing 2 years plus to follow that path.  Seller is trying to do the right thing.  You have the final offer, that's the first one!

1 hour later:  Ok, we'll ask the investor but we can't make any promises.

No one ever asked.  There job is to follow a script and grind down as much as possible to follow a formula, not common sense.  No one ever asked the powers that be whether or not it might be acceptable.

Don't just cave.  Represent your clients zealously.  Counter, Say no, Escalate!!!

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Contact us to receive a Market Snapshot of your area of interest in Southern Nevada. Think of the Wilk-DeShaw Group when you or anyone you know is considering buying a home, selling a home, or investing in real estate in Nevada, Arizona, California, or Utah. Residential, Luxury, Commercial, Leasing, Property Management.

Attorney assisted Short Sales with no out of pocket to the Seller!

Daryl B. DeShaw
Wilk-DeShaw Group
Residential | Luxury | Commercial
Las Vegas, NV 
(877)583-5058
Daryl@Wilk-DeShaw.com


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Comments(5)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The robo negotiating is now helpful to the banks.  Good work we all need to learn from this.

Dec 22, 2011 04:36 PM
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

I have had similar experiences. The bank counter using a BPO from a sub rate agent who does not even know the area. Very frustrating.

Dec 22, 2011 04:40 PM
Ava Anderson
A-Z Atlanta Realty - Snellville, GA
Selling Atlanta from A-Z!

Great points, it's important we fight for our clients especially when it comes to a short sale.

Dec 22, 2011 04:47 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

I agree, they're trying to grind as much as possible. Sometimes we just have to say "no," and mean it. 

Dec 22, 2011 06:59 PM
Daryl B. DeShaw
The Wilk-DeShaw Group - Las Vegas, NV

It's a lot like negotiation a sale.  There is a certain amount of playing poker and if you're bluffing, you need to be sure they never know it.

As for BPO's Ellie?  BPO's, appraisals, etc. of late, regardless of who performs them seem to be about as reliable as the stock market.  Where they come up with some of these valuations is baffling.  The reality is the bank can't win either way with bad evaluations.  Too high and they lose a deal, eventually causing a foreclosure or sale at a lower price because the neighborhood is declining, or too low and they leave money on the table.  With a bad evaluation on one wins either way.  We've got to have the numbers to support us and know how to present them convincingly.  I so wish we could present in person.  I'd close every time!

Dec 23, 2011 02:46 AM