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Short Sales: "One" Strong Contract = Success

By Wendy Rulnick

Real Estate Broker/Owner with Rulnick Realty, Inc.

June 02, 2008 11:53 AM

I get calls daily on my Short Sale listings from agents who think I send multiple signed or unsigned offers to the Short Sale lender with equal position. That is- like an auction. Well, I don't. Per my MLS board approval, I leave listings active with the comment: "Contingency contract, bring your back-up offer". That means, an offer with a clause stating it will go into effect only if the primary offer is withdrawn or otherwise cancelled. Most agents in my area don't operate that way. I get resistance to my method with frequent comments, "That's not how it's done." "We don't do it that way!". But it works, and I'll tell you why.

First, I carefully screen buyers under consideration from my Short Sale seller who have presented an offer. I ask their agent:

"Is the buyer willing to wait 120 days to close?"

"Does the buyer have the means and interest to make any necessary pre-closing repairs?"

"Does the buyer realize the bank may make a counteroffer depending on the appraisal, and if so, is the buyer interested enough to possibly increase his offer or better his terms at that point?"

The answer must be "Yes" to each question for me to recommend that my seller proceed.

Second, if the offer price is not within a realistic range of market value, I encourage my seller to counteroffer. Why? We don't want to waste time dedicated to an unrealistic contract that ties up the property.

Thus, if the buyer meets those qualifications of intent, means, desire, and realistic pricing, there is a strong chance the offer will be approved. I have already pre-qualified my seller as to hardship and financial circumstance. I have found a high success rate with this method. Give it a try.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search Destin Florida real estate and vicinity.

Short Sale Pre Foreclosure Help.

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Specializing in real estate sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

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Michael Wayne Jackson

Coldwell Banker - Novato, CA

Broker - Seniors Real Estate Specialist Novato

I applaud the three questions you have in place for the potential buyers. This also plants a seed in their mind that a sale will not take place overnight too.

Jun 02, 2008 11:57 AM

Irena (Esphir) Popilevsky

RealEstateSINY.com - Staten Island, NY

NYS Licensed Broker/Owner . Short Sale Specialist

Wendy, I agree with you. You need to stand hard on what it is you know that works. I handle many short sales here in New York. and I know what the bank is looking for. So do not let people who just want to make offers for the hell of it tell you how to do your business. Good for you.

Jun 02, 2008 11:59 AM

Susan Hilton

CENTURY 21 Beal, Inc. - College Station, TX

Texas Aggie Real Estate, College Station Bryan Texas Real Estate

Short sales are so much better for the lenders than a foreclosure but it sure seems like they would rather just foreclose than work hard to complete a short sale.

Jun 02, 2008 12:04 PM

Denise Shockey

RE/MAX Aerospace Realty - Cocoa Beach, FL

Cocoa Beach, Brevard County Florida Real Estate

Hi Wendy, excellent points, I wish I had read this about six months ago. Learned the hard way, thank for sharing.

Jun 02, 2008 12:27 PM

Brandon Griffiths

Avalon Properties & Custom Homes - Bullhead City, AZ

Wendy,

I so agree with you...NOW! LOL! I have had 4 properties listed with me as "Short Sales" for almost a year now. 3 of them are with First Horizon. The other one is WAMU.

I submmitted 2 offers to WAMU and had a response time of 2 months and was able to get updates via phone and email. Sad to say both buyers were not able to accept the counter offer from the bank. I was then contacted by the Loss Mitigation Rep handling the file. She had told me they would accept a lower offer. I then contacted both previous buyers and still could not get them to budge. So about 4 months go by and i bring them an offer at the priced they "quoted" me. The buyer was gold, solid. 3 days later i get an email from the Loss Rep stating that my seller has to contibute 25% of the total amount of debt. So that home has now foreclosed as of last week.

I submitted 3 offers to First Horizon on one of the properties and still to this date...4 months later...i have not had a response. I have called and left messages for the Loss Rep, emails, you name it...nothing in return. So i call anyone in loss Mit, and they just tell me that the offers are still in the review process. What??? Why can't i just get a courtesy call???

Long story short, I am going to try your method to cutt 3/4 of the potential buyers who are just trying to "low Ball" them. With all the hard work and time on our part involved, it's worth weeding them out.

Brandon Griffiths

www.ForSaleByBrandon.com

Jun 02, 2008 12:39 PM

Sidney Jimenez

Keller Williams Realty SW - Pembroke Pines, FL

CDPE, ASP

WENDY--Great post! And I think it's important for eveyone to know that the agents that submit one contract get better offers and higher offers than the rest. They attract the serious buyer and not the speculators looking for a steal.

Jun 02, 2008 01:55 PM

Tom Davis

Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE

FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Mike has a good comment, yea ... good post.

Tom Davis

DE Realtor

Jun 02, 2008 03:44 PM

Mark Horan

Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL

"The Resident Chef" - Resident Team Realty LLC &

Wendy- Great post. Great process! *******Feature Post********

Jun 02, 2008 05:21 PM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Susan- Thank you for commenting.

Denise- Thank you for the compliment.

Brandon- Thanks for sharing. I believe it would cut out extraneous work for you to try my method, and get better results.

Sidney- Thank you for your support. I wish all our fellow Realtors understood that.

Tom- Thank you, too!

Mark- Thanks for the feature! I appreciate it.

Jun 03, 2008 12:02 AM

Anonymous

Doug McCullough

good info.

Jul 01, 2008 01:44 PM

#10

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Thanks, Doug!

Jul 02, 2008 12:45 AM

Rosemary Brooks

BMC Real Estate - 209-910-3706 - Stockton, CA

The Mother & Daughter Realty Team

Great approach.. buyers will walk when it is taking too long and we as agent never know what too long is to the buyer. I like the 3 questions you ask. Of course, some buyers will get afraid and walk with just those questions!

Jul 06, 2008 05:03 AM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Rosemary- Thank you! I'd rather have them walk before they write, I say "See ya!"

Jul 07, 2008 01:07 AM

Anonymous

josephine

best ever info for short sale

Aug 25, 2008 04:08 PM

#14

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Thank you, Josephine.

Aug 26, 2008 01:20 AM

Evelyn Johnston

Friends & Neighbors Real Estate - Elkhart, IN

The People You Know, Like and Trust!

What great advice from a seasoned short sale specialist. Thanks for the tips. I lost 4 pendings last month alone because I didn't have this information to rely on. I will do better now! Thanks so much Wendy for your willingness to share.

Sep 16, 2008 07:27 AM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Evelyn- Thanks again. And you're welcome. Good luck on your next ones!

Sep 16, 2008 07:30 AM