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5 Tips to Get Your Short Sale Buyer to Walk

Posted by Wendy Rulnick on July 26, 2009 at 11:00am
Today I was talking with a title agent in my Destin Florida market who handles short sale negotiations for agents. He lamented that he had two contracts recently fall apart, with buyers walking.“Why?” I asked.“ Well, the agents don’t have the seller sign the contract, so it is just an offer. There is nothing to hold them.”“Stop doing that!” I told him, “I would never send an ‘offer’ in to a short sale lender.”Which brings me to my point- " How can you increase the chances of your buyer “walking” from a short sale?" Just follow these tips:1. Don’t have the seller sign the contract. Then it is not a contract, just an offer, and the buyer can bail without repercussion.2. Never ask for an earnest money deposit. Why ask the buyer to put anything on the line to show his investment in the contract? Then he can walk free, usually, with nothing to “lose”.3. Use a 60 day closing and 30 day short sale approval time line. Sure, that will be enough time to get a typical short sale approved- Not! Oh well, if the time frame passes after hours and days of work invested, and the buyer doesn’t “stay”, you can always start all over on a new transaction.4. Write in the contract that the buyer can “Withdraw at any time”. That should simplify things.5. Finally, let the contract be submitted to the lender with others, just like an auction , because the short sale lender will abide by contract provisions and honor the "primary" offer first, right? That tactic will make your buyer stick like glue.Follow these tips, and you’ll be sure to decrease your chances of closing on a short sale.Or, get a buyer with realistic expectations, a good deposit, one strong offer, and an "executed" contract, and be on your way to a successful short sale closing.It's Wendy!Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Tags: agents, buyers, buying, contracts, sale, sales, selling, short
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Comments

  • Wendy Rulnick August 22, 2009 at 5:01am
    Lenders just don't like dealing with auctions, do they?
  • Andrea Mills August 22, 2009 at 4:59am
    I did a BPO for a short sale a while ago where the listing agent had 5 offers submitted, none of them being signed by the seller. She then called me and complained that the lender isn't communicating with her about all the offers she has submitted. Beats me!
  • Wendy Rulnick July 27, 2009 at 2:18am
    Thanks, Jeff!
  • Jeff Corl July 26, 2009 at 1:47pm
    All good points!
This reply was deleted.

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