The first thing you should consider is the short sale buyer’s eligibility for financing. It’s enticing to always go for the highest price without digging deeper into financing. You should ensure that the buyer is highly eligible.
Normally, the lenders give a 30-day leeway time on short sale approval. Once the short sale approval expires, the short sale needs to be re-negotiated and may take 2-6 months more lead time. With this in mind, you have to make sure that buyer’s financing gets approved. A little less price could be a better choice backed up by stable financing. Request for a copy of the buyer’s pre-approval letter as a proof that he has been approved for financing.
The price is only one aspect of Gainesville short sales. You should also carefully review the terms given with each offer. Know whether the buyer is demanding for fixtures such as furnishings and window treatments. See if you can meet those demands.
Always do your research with every offer that comes. If the offer has the highest price and best qualifications at the same time, then go for it.
It is important to have a pre-approval letter that has gone through desktop underwriting to prevent issues from arising. We have one short sale where the buyer’s lender was acting as the short sale buyer’s agent and the short sale loan mortgage broker.
In the state of Florida this is illegal, the real estate agent and mortgage broker cannot be the same person or within the same company. This agent almost cost us the sale altogether. Her communication was non-existent, the buyers called me for updates and she lied about who the loan officer truly was.
After 3 short sale lender extensions, I finally put my foot down and told her she either used one of the mainstream lenders or the seller would not extend any longer. Under no circumstances should a loan approval extension need to happen over the course of 30 days. The agent finally admitted she did not know what she was doing! Real estate licenses should not be so easy to get!
Other Articles to Read:
Short Sale Process - What to Expect
Do I Have to Pay for the Real Estate Agents Commission?
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