A wise man learns from his own mistakes and a happy man learns from the mistakes of others. Here are some helpful tips to make you a happy buyer's agent instead of a wise one.
All the information I am providing is not theoretical or dated but comes from actual short sale transactions that our team has closed in the last 12 months (26) and are currently involved with (40+).
Buyers/ Buyer's Agent - Should know...
Expect to pay for closing costs that are traditionally paid for by the seller. For example surveys, termite reports, condo documents. We do try and get the lender to allow that these be paid for out of the purchase price but sometimes they just cut them from the approval.
Commissions maybe reduced so don't expect to be able to follow through on buying that new refrigerator or paying for that home warranty plan. Don't put your self in an awkward situation by promising these items to your buyer when you commissions may end up being reduced by the lender.
Signed purchase contracts may not be coming back to you to show to your buyer. We usually just send a generic email response. Prior to written approval it would premature to iniate any countering.
Follow up with the listing agent should be done via email. This allows for you to have documented proof of your requests and the listing agent can respond at their convenience. This also allows the listing agent to remain focused on the task at hand, getting your offer approved instead of retrieving voice-mails and returning your call with a "no approval yet." We have a website that agents/buyers can check 24/7 the short sale status on all our listings.
Does the property have any offers on it? The answer you want to here is yes. This indicates that a complete short sale package has been submitted to the lender and the process has been started.
Don't assume that a full short sale package has been submitted to the lender. Ask
Another key indicator that the process is moving along is if the lender has ordered a BPO or full appraisal. They need this to determine if they will accept your client's offer. With out it the file is in limbo.
Patience is a virtue. You need to be very patient when it comes to putting in offers on short sales, and by preparing your buyer's expectations for this, you will prevent having an angry client.
Hope this is helpful and make it a great day!
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