Short Sales don't require brain surgery, as much as time and the patience to follow-up with every time sensitive detail, on the rare ocassions, when you actually get to talk with a representative for the lender. That would be if you are the listing agent; however, let's say that you are not.
Set the Right Expectations With Your Buyers
- Condition your buyers that this can be a time consuming project, but if they have more time (30 to 45 days on average) than money, it can also be very lucrative for them. An ideal example would be: if they are a few months away from the end of a lease. Planning a move around the end or beginning of a school year. Wanting to be in a neighborhood/school district that they would not be able to otherwise afford.
- Run Comps, before you decide on an offering price. If there are a lot of the same "good deals" in the area and it has been a trend, you may be surprised. Too low and the bank won't go for it or too high and it may not appraise. I use 3 months preferably, due to the current market and 6 months max.
- Order an O & E from the title company you use, it will show if and/or when the Election & Demand was filed. You don't want to run out of time!
- Ask how many lenders have an interest in the property. Which one or will both need to agree to the short sale amount, this can really impact how long this will take to be approved.
- If they have access to funds to cover their own closing costs, they will have more opportunities. Some lenders are allowing concessions for closing costs, but very few.
- Inform your clients that while there might be inspection items, there usually is no money to correct them and most of these homes are being sold "as is".
- Be familiar with the general costs of some common home repairs, i.e. average cost for 100 square yards of carpet installed. You don't need to be an expert, or provide an exact estimate. But remember this, for someone who has never owned a home before, they have no idea of the cost to repair or replace something and usually assume that other than painting "It will be expensive."
I hope you find this information helpful.
Rochelle Venckus~303.358.6327~ www.rochellevenckus.com