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Buying a Short Sale - What Keeps Buyers Hanging In There?

By
Real Estate Agent with The DiGiorgio Group

homes denver to boulderIf you know anything about short sales, you know how frustrating they usually are for everyone involved. But I think they're the toughest for the buyer.

I know short sales are terribly tough for sellers, because what they're going through is an unhappy loss. But I'm talking about the process itself - after there is a signed contract, and all the documents have been sent to the lien holders.

Then the waiting starts.

This waiting is tough on the agents, but usually they've both been through it before, and hopefully they have some short sale successes under their belts which can give them a little optimism.

This waiting is tough for the sellers.  But usually they have more 'inside information' about what's going on. Plus, often they don't have any place to go, so the longer a short sale drags on it's almost better for many sellers. At least they have a roof over their heads.

But for the buyers - they're counting the cost of waiting for this house every day!

 

    • They hear news that interest rates have gone up;

 

    • They see another house they like come on the market and then go under contract and it's gone;

 

    • They pay another month's rent on an apartment they hate or they have to explain to their friend or relative why they're STILL living in their basement! 

 

    • School is starting soon and they don't know where they should register the kids.

 

  • I could go on!

 

So, what keeps home buyers hanging in there, waiting for a lien holder (or two) to make a decision on a short sale?  There's only two reasons I can think of -

 

    1. Great Price

 

  1. Something unique about the house - A combination of 'just right' factors they haven't found in another house AND a great price!

 

If one of my clients makes an offer on a short sale, and they get nervous and want to see some other homes, I'll show them those homes. Colorado's short sale addendum says they have the right to terminate the contract any time before acceptance by the lien holder(s). So if they want to move on, I'm going to support them

I warn my clients about getting too attached, about putting too many emotional eggs into that fragile basket. I help them stay sane and focused. And so far, every time a client of mine held on until the response came from the lien holder, we were able to get them into that house. 

If you've boght a short sale, or helped a client buy a short sale, what do you think kept them hanging on?

Other posts about buying a short sale:

Short Sales are Tough - What's a Buyer to Do?

What Keeps Short Sale Buyers Hanging in There?

Can You Buy a Short Sale? Yes, if ...

Are Short Sales Listed at 'Bait and Switch' Prices?

What's a Short Sale? (this post is written to sellers, but home buyers can learn a lot too.)

 

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Read more about life in Arvada, Colorado.

And here’s a little intro to Olde Town Arvada.

Find all the homes available in Arvada, Westminster, Broomfield, North Denver, Thornton, Lafayette, Louisville, Wheat Ridge and Golden.

Gardeners might enjoy my posts about gardening in Denver to Boulder’s front range.

I write posts on real estate issues and local events in the Denver metro area, especially those communities between Denver and Boulder, as a public service. My hope is to give people an idea of the ‘flavor’ of our community, in case they’re new or moving to the Denver area.

I am a residential real estate agent, happily helping folks buy a house or sell a house in the beautiful and friendly suburbs northwest of Denver.

 

 Copyright © 2011 Joetta Fort, The DiGiorgio Group 

Posted by

Joetta Fort, Realtor       720-353-8031       joetta.fort@gmail.com


Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Hi Joetta - Another thing that can keep buyers hanging in there is to keep them informed as much as possible.  So many buyers complain that they tried to buy a short sale but they would go months without one word to let them know if the deal was still working or if the agents had forgotten about them. 

Communication is always important, but even more so in short sales.  When I have short sale listings I make it a point to give weekly updates and ask the buyer's agent to pass on the update - even if there is no real news to tell them other than that we are still negotiating.

Mar 18, 2011 08:35 AM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Joetta.  It is such a frustrating process.  I agree with Susa.  Unfortunately, there are many times when you can't get an update from the listing agent on a short sale except to say "Your offer is at the bank". Blehhhhh.  We and the buyers are so anxious for any tidbit of information. 

Mar 19, 2011 05:40 AM
Sondra Meyer:
EXP Realty, LLC - Corpus Christi, TX
See It. Experience It. Live It.

Joetta, I think you have described the buyers situation very well.  You sound like a great and very understanding Realtor.  I also liked your tip for a blog idea.  I'm hoping to use it later this week.  Well, I'm off to vote for your Arvada again.  :) 

Mar 19, 2011 10:10 AM
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Yeah Sondra - keep voting for Arvada!  And thanks for the compliment.

Belinda - Unfortunately, that's often all there is to tell.  I call the banks at least weekly, but can't get any update from them. Isn't it a bad feeling when you realize, gosh - 3 weeks have gone by without a word!

Susan - I give weekly updates when I'm the listing agent too, it never occurred to me that the buyer agents might not think to pass them along. I'm going to add that reminder to my list of things to do.

Mar 19, 2011 10:19 AM