Short Sales The new fad of Real Estate. Many agents find them necessary to bail there sinking clients out of a bad situation.
On the other hand many agents run for the hills at the shear mention of a short sale. So how do you handle a market laden with them? No two short sales are alike, therefore each must be researched, and negotiated on an individual basis. I tell my buyers to think of each short sale as it's own personality. Each with it's own set of character flaws.
When it comes to listing short sales it is imperative to research not only how much is owed on the property in relation to the true current value of the market but also just how many liens are on the property. If the seller is seriously upside down and have used the home as an ATM machine at some point......I say head for the hills and run as fast as you can. I for one am all for helping people but in some of these situations you are just setting yourself up for an unrealistic outcome.
If the home can be priced in the realm of current market value and not a low... low ... teaser price that will never get approved by the bank, I say, list it. You have a shot, especially if there is only one lien on the home. It is possible to get approvals on more than one lien I have done it before. It takes great patience, tenacity, and the guts to play hardball with the lender. If the home goes into foreclosure the second lien holder stands to get nothing therefore it is in there best interest to negotiate with you to take a small payment or cash contribution at closing. Make your sellers aware that they may have to contribute "something" to appease the guy in second position if they want this nightmare to end.
I think there is opportunity in some short sales. If you can help a seller out of a bad situation or if you can get a "patient" buyer a hell of a deal. Although many agents avoid them like the plague there are others that are writing offers on a continual basis. It all lies in the competence of the negotiating skills of the listing broker. I have negotiated short sales in situations with PMI, HELOCS, etc. Most told me to walk away it cannot be done. I'm here to tell you IT CAN BE DONE. Do not give up and DO NOTtake the "NO" from your negotiator as the last word. I for one will not accept someone whose main motivation is there commission and closed file quota at the end of the month dictate the fate of a deal that multiple people have worked endless hours on. I have buyers agents that bring good buyers to the table after driving them around for hours at $4.00 gallon gas prices. Buyers who have waited 6-8 weeks for an answer on a home they found appealing enough to put an offer on. Request to speak to a supervisor or dept. manager in order to be heard. You have nothing to lose and only to gain. Make it known you will continue to climb the chain of command. Too many short sales are dying on the desks of an overworked negotiators merely because they don't have the negotiating skills or motivation to convince the PMI companies, or investors it is in there best interest to save the deal. There ultimate cure all is "sign the promissory note" ...... The one thing they do not tell you is that the promissory note is NEGOTIABLE. If the negotiator won't negotiate the the promissory note then find out who is requesting the promissory note and contact them yourself.
Short sales do not have to be a dirty word. The outcome is all in the research and negotiating but most of all keeping the asking price real.
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