Re: Short Sales and how to work with those buyers!
I'd be more than happy to submit offers on short sales, as long as they are pre-approved by the bank and the agent has all their ducks in a row.
What most agents don't understand is that they need to try and market the property at full price before dropping price to a ridiculous level. The reason for this is the banks want to be able to show to their stockholders/shareholders that they have done everything possible to try and recoup the banks money. Also, the agent needs to have good communication with the right people at the bank. It's tough to do this, but if they know what they are doing and if they are speaking to the right people, then they have a good chance of getting the short sale approved.
Too many agents drop price immediately in an effort to glean buyers out of the transaction. This is almost criminal when you consider the repurcussions to the seller facing foreclosure and ruined credit.
Again, if there are two loans on the property (which most short sales have) then both lenders need to agree to the short sale. The second usually ends up with very little, but if they don't agree to the sale they may be more inclined to let it go through the foreclosure process since they aren't going to get anything anyway. In other words, why waste your time and effort for something that will not pay you? Make sense from a business perspective.
They can work, but every process needs to be sorted out before it stands a chance. You can usually obtain this information quickly by interviewing the agent that holds the short sale listing. If they don't have all the right answers, just tell your client NEXT!
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