Short Sales and long lasting candles

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January 19, 2011 in Blog by admin
Short sales and long lasting candles
I recently saw a short sale listing come on the MLS at what seemed to be a very attractive price. I called the listing agent to find out why it was priced the way it was. I was told, “We are just trying to getan offer so the bank will start the negotiation process.” I am sure this Realtor had the best intentions, but unfortunately they are setting both the seller and the potential buyer up for lots of frustrations.
If you choose to write an offer on a short sale, make sure your Realtor does a market analysis on the home. If you were to write an offer on the above listing example, more than likely you would be inescrow for several months, only to find out the bank wants considerable more than your offer is written for.
Is there a secret? I am not sure I would call it a secret, but basic homework, common sense, a market analysis and “qualifying the listing agent” by your Realtor can make all the difference in the world.
Qualifying the listing agent? Yes, unfortunately many Realtors are attempting to do accomplish something they have never accomplished before. Have your Realtor “qualify” the listing agent. Your Realtor should ask the listing agent, “Have you completed a short sale in the past? Do you have a system in place?” Just get a feel for how knowledgeable they are about the short sale process. Based on theanswers, you and your Realtor can make an educated decision about moving forward with an offer, or not.Short sale process:Identify a home.Have your Realtor do a market analysis on the home.Find out how many loans are on the home.Qualify the listing agent.Write an offer, your offer price is very important.Offer is accepted by seller.Wait for bank to approve the sale.Pray. (If you don’t pray, light some long lasting candles)Month one will come and go.Pray some more. (Relight candles)Month two will come and go.Keep praying. (Relight candles again)Month three to month six, you should have an answer.Move on, if bank denies.Rejoice, if bank approves.