"Let the Sellers Beware" ... and Be AWARE!
Playing Defense & Offense While Selling a Home ...
Huh? Beware? Thought that was the Buyer!
Not these days! Agents, buyers, and sellers must know how to play DEFENSE and OFFENSE throughout a property transaction. This "one-of-a-kind market" delivers much more for each of them to consider than ever before.
Prior to the present challenging market, sellers asked their agents, "What will I net in proceeds at the closing of my sale"? Now, more often the question is, "If I sell my home for less than I presently owe on my mortgage, what happens? How does that work for me? What does it do to my credit and my financial future?"
During the last week, further complications have occurred within the mortgage industry. These complications surround the ability or inability to close on foreclosed properties. This muddies the waters for sellers, their agents, and potential buyers even further. You can't overlook how it effects we mortgage originators as well. No one at present, is happy.
Many agents are now finding that they have performed their services, listed a property, maintained a vacant home, its' land, secured a buyer, assisted with securing the financing, ordered the inspections, and much more ... only to be told that as of now, the loan cannot close. A seller's attorney may possibly say that the lender has "halted all deals on foreclosures until further directions or notice".
No one knows how this will play-out, as of right now. I personally am trying to stay calm ... and positive as possible at this point, with the hopes that this latest twist in the story will be given the utmost and urgent attention needed ... and what we ludicrously have called "normalcy" within our industry, will return fairly quickly. Time is definitely of the essence, but it's hard to be definitive regarding a time element with this. Our clients deserve the truth and our understanding of the situation, as it presents itself in the future.
For agents working with sellers experiencing the now common problem of being "under water", this latest mortgage revelation can post quite a problem as to proceeding with a transaction of this kind. These sales are definitely not for the timid. An agent better be a "Vince Lombardi", a coach of sorts for their sellers. A coach that retains tight rein, handles their "team" with firmness, presents great strategy, and displays a willingness to tell their team what they might not want to hear ... but must.
In every sense of the word, this agent must prepare the sellers ("team") to play stellar offense and defense in order to survive and win in their game of home sales.
But what if the seller (team) disagrees with the philosophy laid out by the agent (coach)?
Just as a coach in major league football, the agent must be in charge as the expert. Just as a coach during any game, the agent does the seller no favors long term if they allow the homeowner to dictate an unreasonable sales price for their home. No one wins if that ends up happening, and in fact it does everyone involved a grave disservice.
If need be, a coach must be willing to forego a full touchdown and glory and go for the short field goal ... if that decision positively wins the game. A short sale is much the same thing. From a Credit Bureau and lender's viewpoint, it is definitely a more positive outcome for a seller than foreclosure.
In the future, a seller that sold "short", and received the bank's approval to do so, fairs much better than a seller that walked away from their mortgage obligations. They can return as buyers much more quickly.
Ultimately, everyone on the team must have the same "goal" ... coach and player ... agent and seller. Success is won much more easily if everyone is of one mindset and works all in one direction and together, playing offense and defense within their transaction. Educated, well-informed, "well-coached" sellers accomplish this best.
If you are a seller and are working with an agent fitting this definition, you are blessed. Listen carefully. Discuss thoroughly. Move ahead with confidence in their wisdom and expertise.
"Let the Sellers Beware ... and Be Aware"!
* For Buyers and Sellers in the Naperville/DuPage County, Joliet, Plainfield, Shorewood, Will County, Chicagoland areas seeking an experienced, professional real estate agent or broker, or other real estate professional ... please contact me for referrals. I will be happy to supply you with the information you need.
For those seeking mortgage, credit, or financial information and guidance, please contact me also. Information regarding my services, my background, and more can be found at my website: http://www.genemundt.com/.