Buyer's Agents: Please do everyone a favor including your buyers and prep your buyer's on the short sale process.
On many occasion, a buyer on a short sale will end up pulling out of the deal for several reasons:
- 1. The approval is taking too long
- 2. They are shocked when the bank will not agree to pay for certain normal seller expenses
- 3. They feel that negotiating personal property is OK with a short sale
- 4. They don't understand why they can't negotiate with the owner of the property
- 5. They are shocked when they may have to come up with extra cash to close the deal
For these reasons and many more, the buyers, ESPECIALLY first-time buyers, become fearful or suspicious and will walk away from a short sale.
That leaves a seller in jeopardy because they may need to attempt to obtain a new short sale approval from the bank(s).
And keep in mind, although a short sale is moving along, or even approved, THERE IS ALWAYS A FORECLOSURE DATE ON THE BOOKS by the first lender in case the short sale doesn't work out or appears to be idling too long.
As a buyer's agent, you can not only close more deals yourself, but you can save your buyers and everyone else in the short sale transaction ALOT of grief by prepping them as to what to expect, the different possible scenarios that may arise, and what their options will be should any of those scenarios come about.
SURPRISE IS NEVER CONDUCIVE TO KEEPING A DEAL TOGETHER with buyers. Pave the way for them by letting them know the different issues that may arise.
- Be sure they know it is NOT like a normal sale in the sense that the purchase price is written in stone. Other expenses or a payoff deficit to one of the lenders may come about.
- Always re-iterate that the contract, no matter what was signed between buyer and seller, in a short sale is ALWAYS subject to the approval of the bank(s)
- Unless it is a HAFA short sale with mandated timeframes, let them know that the approval AND escrow closing may take much longer than expected.
- DO NOT let your buyers treat the short sale as a "disposable" transaction, that they can simply toss away should a better deal come along. MAKE SURE THAT THEY RESPECT THE CONTRACT!!! It doesn't matter if it is a short sale, it is still a real estate transaction that is ALWAYS worthy of it being a fully bonafide legal purchase agreement.
By prepping your short sale buyers the right way, you pave the way for a calm, rationale approach towards the purchase agreement. And will get that home for your buyers that they loved so much without slipping into the firey pits of high emotions!
ONE MORE THING: If you are the buyer's agent and this is your first short sale, have someone with a good amount of short experience meet with you and your buyers, or have a conference with your broker/manager with your buyers so that they are fully prepared for the possible outcomes.
A first time short sale IS NOT the time to try and "fake it 'til you make it"!! You're doing no one a favor and putting a seller in jeopardy by letting your sense of pride prohibit a successful business transaction.
Generate More Leads from this Listing
With a Trulia Pro Account
Find what you need?
See More Blog PostsAbout Real Estate! SEE MORE NOW!