Are your short sale buyers in Absentia?
Do not lose hope. It is something that is to be expected. However, it should not stop your approval process.
The buyers of Short Sales, some are investors and some are “owner occupant” real estate buyers. Allow me to clarify the differences.
The Short Sale investor:
This could be the buyer that short sale sellers dislike the most. As a realtor we don’t know if they are going to be around when the approval for short sale has been given by the bank who holds your mortgage.
I will say that over 50% of the time, they are not present when more information is requested by the bank that holds a sellers mortgage. We watch as the Short Sale Investor Buyers, 50% of the time, don’t stay around long enough to complete the process. The reason has to do with the investment buyer continuing to look at available “short sales”. It usually, has nothing to do with the subject property. Although, this is the typical reason given.
The Short Sale “Owner Occupied” buyer:
Beggars cannot be choosers. We have found that those buyers that are going to stick with a short sale are those that are going to “owner occupy” the short sale property. Not 100% but the odds are better than the 50% as we have seen by the “investor buyers of short sales”.
Their agents are those that are diciplined and let their buyer know that they are the “only game” when it comes to the short sale.
The Bank, if they approve the short sale, will give the buyer that is “in pocket”, the first shot when the short sale is approved.
Regarding increases to the sales price, changes in terms or conditions, and any other “modifications” to the short sale terms.
What can you do?
If you are a short sale seller, the first step is getting the short sale approved. Allowing the bank time to approve the short sale, including the price. The short sale approval is the most important part of the process. We can get another buyer, most of the time, when we get the final approval from the bank who is responsible for the approval of the short sale.
Most agents, including the Paris911 Team, will continue to push for the approval of the short sale. Eventhough the buyer is no longer “in pocket”. Once a “secure” price has been given by the bank, finding another buyer that is game for the “bank price”, proves to be much easier.
You now have a “approved short sale”. Those move a lot faster than those where the bank is still working on the numbers, looking at the appraiser, and the terms and paperwork refinement of the short sale.
Stand Fast, Be Strong, make sure that you are getting the best Short Sale advice possible.