Short sales are a very interesting aspect of our business.   I would try but be prepared to wait for the bank.  It might take extra time to close the deal.  I wouldn't be afraid unless your buyers are in a tearing hurry.  Short sales are a way to get a property for a little less then market value.   I've been involved in a few.  Ask the listing agent

  1. have you started negotiation-  If it is already negotiated it will be easy.
  2. Make sure the price is realistic and not a teaser - I just showed a home that was listed at $199K but the bank wouldn't take less then $240K.  I was pretty annoyed and might have lost the customer.
  3. Pull title early and make sure there are no liens -  If they are make sure they are negotiated away
  4. Check tax liens -  Those are much harder if not impossible to negotiate.
  5. Find out if the house is in foreclosure -  You can ask the listing agent.
  6. Be prepared to wait.
  7. You will need a funding letter and/or proof of funds (for cash buyers)
  8. Do not let your client spend money until the bank approves the shortsale
  9. Make sure all dates of inspections etc are from bank approval not contract deadline

All this said it can be rewarding for both you and your client.  Don't avoid them just be careful.

 

I love the challenge of a short sale it is a way to help people avoid worse credit problems. Call or Email me with any questions.  www.debbieholmes.net.

  Debbie Holmes

Gold Key Real Estate     Company logo

(208)761-2551 Email: d5holmes@msn.com

To search Boise Homes visit my website

 

 

18 Comments on Short sales should I show them?

JAN
31
2008
102,732 Points

Show them short sales, they will need to sell just like everything else, plus you work with the bank instead of an emotional owner.

Take care!

RJH
8:59am • #1
424,967 Points 39 Featured Posts Hit Router Called Shot Master
Debbie,  I would prepare the buyer for two to four months wait.  That way, they'll be happy if it is only three months.  Tell the buyer up front that the bank will do an independent appraisal and/or a BPO so their offer should not be way out of line with true market value.   Wendy
10:21am • #2
Wendy gave you some good advice. Also prepare them to lose some cash in the process. Lender fees on their loan, inspection or termite fees if they move on a property. Short Sales are not for those short on time or cash
8:42pm • #3

Debbie--

Thanks for the great post!  I really appreciate the advice!  The part about dating the inspections and other contract deadlines from bank approval -- rather than contract ratification -- was especially priceless.
10:15pm • #4
122,087 Points 2 Featured Posts Called Shot Master
I like short sales because it allows me to help people without taking advantage of them.  It puts me on a level playing field as the investors.  Some of who are honorable and others who are not.  There are many people who prey on people in foreclosure and make matters worse for them rather then better.  I can bring a little honesty and caring into a disturbing situation.
10:51pm • #5
488,843 Points 7 Featured Posts Outside Blog

Debbie:

Good information. Sounds like you have been through a few. I have not dealt with one yet so this is great informatlion. Thanks
10:57pm • #6
FEB
01
2008
122,087 Points 2 Featured Posts Called Shot Master
I had a lot of good mentoring from some people.  I also had a lot of assistance from my title and loan officers.  The mentors told me how to approach the banks and judgments.  It was a long but very interesting experience and I am in the middle of another one.   The most frustrating parts were reaching the bank on the phone.  
7:36am • #7
FEB
02
2008

Yes. You should show all the ShortSales as possable. For the following reasons.

1. Your buyer can get a deal. If he or she can be patient.

2. The seller can avoid a Foreclosure.

3. Thats the way of the market as of now.

 

When things turn around we all can get back to the norm.

Will
6:15pm • #8
I agree unless the buyer is in a hurry.  Sometimes dealing with the bank takes time.   
6:32pm • #9
FEB
06
2008
 Short sales are a pain in my you know what.  An agent in our office just received a response after about 60 days, luckly the buyer hung in there - but most will not.  If the banks would streamline the process it would really make it much easier for everyone involved.  Honestly I prefer not to show them or advise the buyer on the process and let them decide - most of the time buyer doesn't or can't wait and looks at something else.  You would think the banks would improve the process in order to reduce the foreclosures which I'm sure can be much more expensive than taking a small hit up front.
1:46am • #10
122,087 Points 2 Featured Posts Called Shot Master
Yes they are a pain but it is a way to help a client who is in real trouble.  Since I list short sales I show them.  I do call the listing agent and ask if negotiations are started and if there are offers on the table.  Some agents do not know what they are doing.  I usually start the negotiation the day I take the listing.  Sometimes even before.  If the agent has not talked to the bank I am very reluctant to show that place.  I am showing a short sale today.  It is priced 50K less than the comps.  I need to see the condition....  
8:04am • #11
311,746 Points 2 Featured Posts
In our area there are a lot of REO properties where you can get a good property and avoid all the hassles of the wait and cost of playing with the Short sales.
9:28am • #12
FEB
07
2008
122,087 Points 2 Featured Posts Called Shot Master
Yeah but the people who lived there might have destroyed it.  Yesterday I went into an REO property that had no floors, no furnace, no kitchen.  It did have a sideways toilet and black mold.....
8:54am • #13
FEB
16
2008
122,087 Points 2 Featured Posts Called Shot Master
Short sales are worth showing just agent beware....
9:54am • #14
143,665 Points 1 Featured Post Outside Blog

Debbie

What choice do you really have? In some area's of the country 1 out of every three homes are short sales.
10:32am • #15
In a market that is flooded with inventory, why not just go after REOs?  Once a bank has some real motivation the best deals can be cut.  This gets rid of the second mortgage problem as well.  Empty house, motivated sellers, no emotions or undue waiting.
NOVA
10:59am • #16
122,087 Points 2 Featured Posts Called Shot Master
I have waited on REO's also.  The bank doesn't always act like they want to sell their homes.  Also they gave me a 30 page addendum written by their lawyer's that had to be read carefully and countered.  Plus they insisted on a 48 hour bump clause that kept my buyer nervous from start  to finish.
11:04am • #17
FEB
17
2008
122,087 Points 2 Featured Posts Called Shot Master
I like short sales cause it is interesting and challenging work.
10:20am • #18


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Debbie Holmes

Boise, ID

More about me…

Gold Key Real Estate

Address: 915 N. Cole Rd., Boise, ID, 83704

Office Phone: (208) 376-9000

Cell Phone: (208) 761-2551

Email Me

This is a blog about all things real estate (and a few extras). I blog about my buyers, sellers, listings, short sales, the real estate market. I am internet savvy and am trying to learn more skills. I like blogging because I get to share information with other real estate professionals. I can find you a great home in the Treasure Valley. I was the Democratic Nominee for CD2, Idaho for the US Congress. I have two website: http://www.debbieholmes.net and http://www.greatboisehomes.


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