This is an older blog I had written. I have not posted it to Active Rain until now. I hope you all get something from it. Have a Great Thanksgiving!!
Agents who work well with Investors tend to be the winners in this current real estate market. Being successful with Short Sales requires a little different approach than traditional retail home marketing. First, it requires getting over some of the natural rivalry that has existed between Agents and Investors in the past. Investors can jump in early with an all cash offer that will get the process rolling toward working out a deal with the Lender.
Secondly, many Investors have relationships with professional Short Sale negotiation teams that successfully complete hundreds of Short Sales each year. Working with an experienced negotiation team not only saves ours of time, but as much as triples the likelihood of success in working out a deal with the Lender. Doing well in Short Sales also, quite frankly, requires doing a good job of sizing up the Homeowner and the property. The Homeowner must be reconciled to the need to sell, organized and motivated enough to prepare the extensive paperwork the Lender will require. Avoid homeowners who simply making a strategic decision to sell and are not actually in distressed. While Short Sale negotiators can be successful at reducing or eliminating multiple liens, each lien reduces the likelihood of a successful negotiation. Finding the right end Buyer at the right time is also critical. It is best to get the end Buyer in place just after the Short Sale has been approved and to make sure from the start that that Buyer is pre-qualified and not securing financing that will require seasoning. Finally, becoming a successful Short Sale Agent requires being able to see the deal in a new way. Highest is not always the best price. Both the distressed sale negotiating price with the Lender and the 30 day quick sale price if the property is been flipped to an end Buyer will be wholesale deals. The key is pricing the distressed sale according to distressed property comps in the area, then turning around and repricing the final sale at a 30 day quick sale price as soon as the Lender gives approval for the sale. Agents who get good at pricing the property right will be the ones to successfully close Short Sales day in and day out.
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