Today I am sharing a story about a short sale that took about 6 months to close escrow, and I explain why. Not all short sales move through the process this way, thank goodness, but when they do, it's often the buyer's fault. However, in this case, it was not the buyer's fault.
Although we had our share of buyer's agents initially who, when asked what the buyer thought, replied that the buyers wanted to offer less than list price. When buyers want to offer less than list price, it's generally because the buyer has not been made aware of the comparable sales, and the only factor the buyer has is the sales price. They tend to automatically presume that they can negotiate, and short sales have certain price points, typically already reduced for condition and priced at a point the bank will accept.
To get around this problem with buyers, I will often send a quick two-liner CMA to the buyer's agent to hand to the buyer. This lets the buyer see in black-and-white that the per-square foot cost is typically much lower than the other homes around it. Buyers often think that a 3,000 square foot home that sells at $300K means a 3,500 square foot home should also sell at $300K. As real estate agents, it is our duty to help them to understand pricing. It's not the buyer's fault.
You can read more about the short sale in West Sacramento in my personal blog today: Why Buyers Waited 6 Months for a West Sacramento Short Sale.
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