Agents should educate their buyers of short sales.

By
Real Estate Agent with RE/MAX Centre Realtors

I receive calls from buyers looking for short sales and foreclosures. They want to know how they can buy distressed properties and as they see that I have the CDPE designation they call me.

I like to meet buyers at my office and explain the home buying process and also explain the pros and cons of buying  a reo or short sale.

                         Here are some things buyers should be made aware of :

1.  These days lenders are pricing the homes at close to market value so do not expect 'to steal ' the house .

2. If it is an ' as is '   sale, figure out the costs of use and occupancy permits, possible  lender required repairs and other repairs before making an offer.

3.  If it is a short sale, if the seller has signed it, it does not mean the sellers lender wil agree to  the price and terms. Be prepared for a counter offer. You often have only 3 days to accept , counter or reject the counter offer and you may not receive this counter  offer for weeks .

4.  Once the offer is accepted by seller's lender, in short sale, expect to close in 30 days..

5. If it is a short sale , do not give notice to your current landlord until you know when you are closing. If you are required to give 60 days notice, you may have to be prepared to lose one months rent.

6.Different lenders have different policies so ask your agent to find out from listing agent about what the lender expects in terms of closing date. You will also receive an addendum from the seller's lender , that you have to sign .

If you live in Bucks , Montgomery counties and are looking to buy a foreclosure or short sale call Gita Bantwal at Re/Max Centre 215 3438200x124 or 2152758491

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When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

Comments (42)

Bernadine Hunter, SFR, ACRE
Keller Williams Greater Columbus Realty - Pickerington, OH
"Finding Solution to Your Real Estate Needs"

Great information to have to pass along to our distressed property buyers. They still think they're going to get a $100K   house for $50K, which is a rarity these days.

Mar 27, 2013 12:16 AM
Terry McCarley
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

Great advice!  I constantly talk with buyers that have very unrealistic expectations of the short sale process.  They aren't for those without patience.

Mar 27, 2013 12:18 AM
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

the one thing a realtor cant explain the the risk of inclining interest rates as the buyer waits and waits

Mar 27, 2013 12:21 AM
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

Uncertainty of timing and potential rejection are the hardest aspects of purchasing a short sale.  While many banks are getting better at processing short sale offers, its still a crap shoot. 

Mar 27, 2013 01:00 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker
In this market, a short sale has a better chance at being accepted but the buyers need patience.
Mar 27, 2013 01:17 AM
Raymond Denton
Homesmart / Evergreen Realty - Mission Viejo, CA
Casta del Sol Realtor

I hate short sales - I'll be so happy when that market disappears.

Mar 27, 2013 01:19 AM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

According to a government report, 50% of RE transactions last year were SS, so despite the arduous time to closing, many SS were completed. Most all of the lower priced inventory has been purchased, some by bulk sales, so the median price of remaining inventory has risen and will continue to rise going forward. However, I believe the consumer has the knowledge about the the SS process and their consequences and a brief summary by their agent would be appropriate if considering a SS transaction.

Mar 27, 2013 01:35 AM
Ann Wilkins
Golden Gate Sotheby's International Realty - Oakland, CA
Oakland, Berkeley, Piedmont CA

I am closing a short sale where I represented the buyer.  Signed our offer on April 1 2012 and will close on April 12 2013!  That is the longest one that I've ever done but the prices have gone up in the past year so it was definitely worth the client's wait.  I always give the buyer's detailed information about the pros and cons of short sales.  In the past, the deals were better but with such an inventory shortage, I have no problem showing short sales.  Most are closing with in 90 days after offer accepted.

Mar 27, 2013 02:31 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I am still seeing some bargains on short sale closings.  But in general prices are reflecting the market more and more.

Mar 27, 2013 02:34 AM
Lehel Szucs
All Seasons Real Estate, Inc. - Covina, CA
REALTOR of choice

short sales are fun ... not .... but I do encourage my buyers to look at them if they have time and patience ... I find that in this market that is where the greatest discounts exist ... kind of 

Mar 27, 2013 06:55 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Gita... even after all these years most buyers don't understand the differences between short sales and forclosures. They say them like they are one word. And they don't fully understand the differences between distress sales and normal resales. It's an ongoing education process.

Mar 27, 2013 07:42 AM
Paul Silver
Tiverton, RI
Rhode Island full service real estate firm

We have one short sale with BOA that is taking months... went to Auction.com, then had to reapprove the sale after the auction, so much so slow... at least the agent involved at our firm is good at managing expectations... so far, 6 months to do this sale... we shall see...

Mar 27, 2013 08:10 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Bernadine, I hope buyers will read this post and learn from all the comments.

Terry, I have read of some short sales that took over six months for approval.

Ron, Buyers may also find that  requirements by buyer's  lenders may change by the time they are ready .

Jeanne, I am glad banks are getting better .

Hella, These days some banks are accepting them quicker.

Raymond, They will not disappear for a long time.

Mar 27, 2013 09:28 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Kimo, I agree. We should educate the buyer.

Ann, good luck with the closing.

Gene, Prices are sometimes even higher than market value. I was talking to an agent who said the lender required a certain amount and it did not appraise and the deal fell through.

Lehel, It depends on the local market conditions.

Nina, I agree. They think both words  means the same.

Mar 27, 2013 09:32 AM
EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD
LAROSA REALTY - Orlando, FL
Short Sales, Foreclosure & Bank Owned Real Estate

Gita, Great tips and information to sending to our buyers... Thank you for sharing with us!

Mar 27, 2013 09:52 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Gita, great post.  Even as long as short sales have been aroundnow, it is amazing how many agents still do not understand the process.

Mar 27, 2013 08:10 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Emilia, Thank you.

Bob, Thank you.

Mar 27, 2013 08:50 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Gita - It's so interesting to see how things are done in different parts of the country. Your mention of use and occupancy permits on an as-is house is something that would not come up in our community. But then, our county still doesn't require permits for painting and remodeling (thank goodness!)

Mar 29, 2013 02:50 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
Matte, I am glad we do not need permits for painting in Warwick township.
Mar 29, 2013 09:21 PM
Ric Mills
Keller Williams Southern Az - Tucson, AZ
Integrity, Honesty, and Vast Real Estate Knowledge

There are so many misconceptions out ther, you have to sit down and go over things.  Great post.

Mar 30, 2013 08:29 AM