Sarasota Short Sale Agent - Venice Stop Foreclosure - Bradenton Short Sale Help – FREE information on Foreclosure Defense, Mortgage Modification, Tax Consequences, Deed-in-lieu-of-foreclosure, Short Sales, Deficiency Judgments, Bankruptcy Referrals & more. John Michailidis, SaraMana Properties – Phone: (941) 822-5221
Sarasota & Bradenton Florida Homeowners Are Doing This To Increase Their Short Sale Approval Rates By At Least 61%!
Let's face it, we as real estate practitioners have very little control over how the banks handle our short sale offers -- lost paperwork, failure to respond to phone calls and emails, obstructionist and arbitrary demands -- the list goes on and on. But, just because we can't control the process on the bank's end doesn't mean that we can't do things on our end to help ensure that our short sale offers get recognized, responded to, and ultimately approved. From my experience as a seasoned short sale practitioner, it all comes down to the level of buyer commitment that you are willing to accept before forwarding a short sale offer on to the lender. Far too many agents are willing to start the process with a very weak contract (and this goes for both seller's and buyer's agents) and then they wonder why the buyer "walks," or the lender fails to take the contract seriously. The stronger your contracts are UP FRONT, the more likely you are to come out the other side of a short sale transaction with an approval. Let's get specific . . . On all of our short sale offers we require UP FRONT EARNEST MONEY, and UP FRONT INSPECTIONS from ALL buyers, as well as the following two contract clauses: Of course, the first thing out of the mouth of buyers' agents is, "My buyer doesn't want to risk the inspection money up front, or tie up their earnest money." To which I reply, "Okay, we certainly don't want to force your client into doing anything they don't want to do, but such will be the requirement for accepting an offer on this property." The rest of the conversation is a process of educating the buyers' agents: "Don't you want a transaction with a high probability of closing?" "Don't you want your buyer to be committed to the transaction?" "Isn't it in your buyer's best interest to know that the property isn't suitable for them now, rather than doing the inspection in six months and then finding out, and having wasted all of that time, and missed out on countless other properties?" "Don't you want the lender to take your short sale offer seriously?" "How committed is a buyer who isn't willing to commit $350 for an inspection up front -- shouldn't they have some skin in the game if the seller is going to pull the property off the market on their behalf?" etc. . . . While some would consider this an unnecessarily "hard-core" approach, I'd like to suggest that it's the most professional approach, the approach most consistent with the fiduciary responsibilities of an agent, and the approach most likely to ensure approved and closed short sale transactions. Will you get every buyer to agree? Of course not, but so what! Are you interested in "potential" buyers (tire-kickers) or are you interested in SERIOUS BUYERS WHO ARE COMMITTED TO THE PROCESS? You should be willing to forgo a prospective buyer or two until you find that one serious, committed buyer who really wants the property -- this is the key to getting a high percentage of your short sales closed! And, it is in the best interest of BOTH the buyer and seller, as well as the agents, in the long run. Of course, none of this is done without the knowledge of the parties. Both sellers' and buyers' agents must educate their clients/customers up front. At the initial listing agreement, sellers' agents must educate their sellers as to what to expect when an offer comes in, and what constitutes a "good" vs. "insufficient" offer. At the initial buyer consultation, buyers' agents must educate their buyers with respect to short sales, and explain that the only difference between short sale offers and any other offer they might make is that the process is likely to take longer (of course, the "up-side" is that short sales often sell for a significant discount as compared to non-distressed properties). I can attest from personal experience that if you follow these steps, you WILL find short sale buyers willing to commit to the process, and you WILL significantly increase your percentage of approved and closed short sale transactions.
NOTE: This article is not intended to offer legal advice, and you should consult your own legal counsel regarding the applicability of any particular contract clauses mentioned herein.
The SaraMana preForeclosure & Short Sale Assistance Team helps Short Sale Buyers, and Property Owners in Sarasota, Lakewood Ranch, Bradenton, Venice and throughout Manatee & Sarasota Counties Florida to STOP Foreclosure, potentially Avoid Deficiency Judgments, Successfully Short Sale their homes, and move on with their lives.
For more information, Call 941-822-5221, or use this ONLINE FORM.
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