The last few years have definitely been a learning experience in the Short Sale Process for everyone...and we have all been working furtively to be able to learn and understand the ever evolving and changing dynamics of the short sales. Each Lender has its own internal process and the dynamics of each transaction can change at a moments notice and at the whim of the Lender. Everyone was learning on the run and one transaction at a time.
Sellers found themselves at the mercy of not only their Lenders but of their Buyers as well...gosh, they we're considered lucky just to have a Buyer!
Inevitably times will change...and they did. It is no longer always a situation of the Seller "being lucky" to have a Buyer...any Buyer, then painfully finding themselves at both the Buyer and Lend
er's mercy.
-Buyers were able to wait for lender approval before being required to do inspections...no longer...
-Buyers were allowed to pursue other purchasing alternatives during a lengthy short sale process ....no longer...
-Buyers did not have to really invest anything into a short sale with the exception of making a offer...no longer.
Sellers are now expecting something in return from their Buyers, they want and need to have a reasonably high confidence that they have serious Buyers on board, who are in it for the long haul and are invested in this sale. (These Buyers are getting a great deal after all!)
A few of the ways Sellers are doing this is....
1. They are expecting a strong Earnest Money Deposit (EMD) which becomes hard upon an accepted purchase agreement between the Buyer and the Seller.
2. They are requiring inspections to be completed within the standard time frame stated in the Purchase Agreement.
(this can mean $200-$400 out of the Buyers pocket) but will show Sellers they are serious about this purchase.
**The added perk for the Buyers is, they have learned the house is in acceptable condition and have not waited 3-6 months (or even more) to ultimately learn something is wrong with the home...which they have now just wasted months on. (This really is a win/win for all)
3. They are selling the home "As Is" and will contribute no funds to repairs. (The Sellers have no money)
4. They are requiring a minimum of 3-6 months time frame in order to close. (This is the average time required for a short sale)
5. They are not allowing Buyers the right to pursue other purchasing alternatives during this 3-6 month time frame. (you cannot find another home you like better and walk away with your EMD)
So, for the Buyers who are looking for that GREAT DEAL and plan to make an offer on a Short Sale, if you want to be taken seriously you will need to bring something to the table, show you are invested in this sale and prove you are in it for the long haul....or your Seller's may just say no thank you....NEXT!
Sellers found themselves at the mercy of not only their Lenders but of their Buyers as well...gosh, they we're considered lucky just to have a Buyer!
Inevitably times will change...and they did. It is no longer always a situation of the Seller "being lucky" to have a Buyer...any Buyer, then painfully finding themselves at both the Buyer and Lend
-Buyers were able to wait for lender approval before being required to do inspections...no longer...
-Buyers were allowed to pursue other purchasing alternatives during a lengthy short sale process ....no longer...
-Buyers did not have to really invest anything into a short sale with the exception of making a offer...no longer.
Sellers are now expecting something in return from their Buyers, they want and need to have a reasonably high confidence that they have serious Buyers on board, who are in it for the long haul and are invested in this sale. (These Buyers are getting a great deal after all!)
A few of the ways Sellers are doing this is....
1. They are expecting a strong Earnest Money Deposit (EMD) which becomes hard upon an accepted purchase agreement between the Buyer and the Seller.
2. They are requiring inspections to be completed within the standard time frame stated in the Purchase Agreement.
(this can mean $200-$400 out of the Buyers pocket) but will show Sellers they are serious about this purchase.
**The added perk for the Buyers is, they have learned the house is in acceptable condition and have not waited 3-6 months (or even more) to ultimately learn something is wrong with the home...which they have now just wasted months on. (This really is a win/win for all)
3. They are selling the home "As Is" and will contribute no funds to repairs. (The Sellers have no money)
4. They are requiring a minimum of 3-6 months time frame in order to close. (This is the average time required for a short sale)
5. They are not allowing Buyers the right to pursue other purchasing alternatives during this 3-6 month time frame. (you cannot find another home you like better and walk away with your EMD)
So, for the Buyers who are looking for that GREAT DEAL and plan to make an offer on a Short Sale, if you want to be taken seriously you will need to bring something to the table, show you are invested in this sale and prove you are in it for the long haul....or your Seller's may just say no thank you....NEXT!
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