Real Estate Blog - Short Sales: "One" Strong Contract = Success

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Short Sales: "One" Strong Contract = Success

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 That means, an offer with a clause stating it will go into effect only if the primary offer is withdrawn or otherwise cancelled.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.

Read my Blog.

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

Posted by Wendy Rulnick "Its Wendy!" Destin Short Sales on 06/02/2008 06:53 PM

Comments (17)

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Originally posted at: Destin Short Sales- Emerald Coast Florida Real Estate: Short Sales: "One" Strong Contract = Success

Post is included in group: Sharing Information of Short Sales
Post is included in group: Short Sale REALTORS®
Post is included in group: Short Sales and Forclosures ONLY
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17 Comments on Short Sales: "One" Strong Contract = Success

JUN

2008

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.

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.

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.

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

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

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.

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

Tom Davis

DE Realtor

JUN

2008

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

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.

JUL

2008

good info.

JUL

2008

Thanks, Doug!

JUL

2008

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

2008

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

AUG

2008

best ever info for short sale

AUG

2008

Thank you, Josephine.

SEP

2008

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.

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

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