I'm working on an offer for one of my short sale listings. It started me thinking about how different I exercise my Fiduciary Duty to the seller when it's a short sale vs equity sale. When I first got my license, the term short sale was never mentioned. The Fiduciary Duty to the seller seemed to be clearly defined in terms of activities.....those you did and those you didn't. Do: Do....Market the home at the best list price you can. Do....Negotiate the highest offer price you can. Do....Negotiate the repairs request and other terms to the best financial … (34 comments)
I have some buyers in escrow on a short sale...they really want this home but the seller is now trying a last ditch effort at a loan mod. He's already been turned down. I've told them this and we are getting close to the foreclosure date, but they want to hang in there. Today...I checked in with the listing agent again who tells me they call escrow every day for a status update. Status on what? I communicate with them constantly about the fact that nothing has changed. The seller has even signed our cancellation papers....escrow doesn't know anything … (13 comments)
"Why Hello....Remember Me? I was the one who had to call a few weeks ago to tell you that all you real estate transactions had just fallen a part?" Well..maybe that's not how to start. Maybe an email is better. Or flowers with a little note? Yikes.... Some of you will remember a series of blog posts I wrote from the bottom of a bottle my cabin over a deal that was dying (and died) because the lender was in an audit and ultimately shut down by Fannie Mae? Yeah...those clients. Sooo, minding my own business today getting my … (11 comments)
short sale: What's The Difference Between A Short Sale And A Bank-Owned?
- 12/22/10 04:35 AM
BanksLendersShort Sale LendersBank NegotiatorsAsset Managers These are all terms seen in listings. Realtors® use them daily, but the consumer does not. Even buyers who have been out searching for a while can become confused about who they are actually negotiating with, and how that might affect the transaction. I have a client that I've been working with for a few weeks. Last night I got an email with a few questions that made it clear he did not understand the difference between a Short Sale and a Bank-Owned (REO) when it came to negotiation. Question One (about a Short Sale): … (33 comments)
short sale: Can You Offer Less On An "Approved" Short Sale? Maybe, Maybe Not
- 12/20/10 08:54 AM
My buyers ask me this all the time. Just today I was out with a buyer who wanted to know about the two homes we saw, if they could offer less than asking price. So the simple answer is 1) NO and 2) YES. What? this doesn't make sense to you.....let me help. 1) No When a short sale lender receives an offer for a given price, they order an appraisal (called a BPO). This is different from a normal appraisal and it's done by real estate agents. It takes into account the actives/back-ups and the general direction of the market, in … (31 comments)
This statement made me sad....but not because I was losing a listing. They thought I'd be unhappy because they were going to keep their home at the "expense" of my sale. That was not MY sale....that is their HOME! I always talk with my potential short sale sellers about loan mods. If they want to stay in the home, they might be able to. Any agent who has worked with short sales long enough also has a knowledge of the loan mod options...and who might qualify. If a loan is under $417,000 there are federal programs that allow … (11 comments)
short sale: My Best Short Sale Success.....The One That Didn't Happen!
- 04/12/10 06:02 AM
Success is a funny word! To those of us who work on commission, it would seem that success is the closing of a transaction and payment....but that's not the only way to measure success. In this case, I made nothing....but it's one of the best success stories I have. They kept the house!! Over a year ago (that's right 14 months ago) I was contacted to list a home in my area as a short sale. I checked values, discussed the situation with the sellers and we determined that they really had no alternative. They had a daughter who was just … (65 comments)
short sale: How To Be An Equity-Seller In A Short Sale World....The Elite Property Experience
- 01/19/10 05:59 AM
I met with a new listing of mine yesterday. As we were talking in the living room, I noticed she was looking forlornly out the window at the house across the street. I knew why, it was a new listing as well....and it was a short sale. I also knew the list price....ridiculously low. As we spoke, she sighed and said that it was going to really hurt her ability to sell. "No....we are going to hurt THEM," I smiled. Why could I say this with confidence? Experience! The equity seller is reappearing and is highly valued. We Realtors know this … (6 comments)
short sale: What Reassurances Can We Offer Short Sale Sellers?
- 01/17/10 10:44 AM
Part of my initial conversation with sellers normally includes the sentence "I'm going to be the closest person in your life during this transaction....I'm going to be your adviser, mother and priest, so call me day or night and you can tell me anything." I have found this to be true. Over the years, I've held hands, wiped tears, given hugs and spent hours and hours on the phone talking through fears and dilemmas. This is all part of a "normal" sale, and at least I could promise them that we will get through this and make it work. What can … (5 comments)
short sale: Real Estate Obstacle Course....A User's Guide
- 08/16/09 02:55 AM
Does your real estate endeavorsfeel like an obstacle course? We hit the ground running and then have to maneuver through challenge after challenge to achieve the goal for ourselves and our clients. I've been thinking about this and have put together a short "survival guide." Tire Run (REO Purchase): This is a mainstay to any good obstacle course. The goal is simply to run from one side to the other. Since the length is reasonable (about 30 days) and you can see the goal from the starting line, you expect that this can be simple to accomplish. Perhaps it's that very … (26 comments)
short sale: Quick Success Stories From This Week....Let's Get Some Control Here!!!!
- 06/12/09 04:53 AM
I am tired of the banks having all the control and telling us and our clients what the deal is! I have always pushed back, but oddly enough this week, it's working. I hate having to call a buyer or seller and tell them that the only option is money out of their pocket. I also hate to find that MY pay has been slashed with 2 days left to go in the escrow and I have no option. So....I'm pushing back! And this week....some success. 1) Short sale had the closing delayed by 4 days after the approval letter, lender … (6 comments)
short sale: Never Forget Our "Product" Is Someone's HOME
- 05/29/09 02:27 AM
The Real Estate Market is filled with pitfalls and challenges. Our buyers are caught up in "hurry up....then wait." Every home is experiencing multiple offers and decisions are being made quickly. Last night I got an approval on a bank-owned property and my buyer's response was "that's great, which house was that"? Which house was that? This tired young couple had been writing offers for a week, and now that they have an approval, they have no idea what they bought. This is wrong!!! In this environment of Short Sales and bank-owneds offers are turning into more of an Option-to-Buy. … (8 comments)
short sale: How Do You Communicate With Your Clients Now While Waiting For The Bank?
- 03/24/09 03:25 AM
In a normal market, a normal escrow, there are many activities happening once the negotiation is over and the escrow is opened. After all, we generally have 30 days to get everything done. The buyers are working with inspections and lenders and the sellers are preparing to move and signing disclosures. The agents are active as well, helping with appraisals, tackling the mountain of paperwork...but what about a Short Sale, where there can be months of waiting...how do we keep our clients excited and on track. How do we communicate with them in such a way as to give them confidence … (5 comments)
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