Short sale listings are different from listings where the seller has equity. When we receive an offer on the listing and the seller agrees to the price it does not mean that the lender will accept the price. We mention a settlement date in the original accepted offer but may not hear from the lender until after that date.
When I receive offers on a listing I talk to the buyer agent and explain how the process works and also state that it is important for them to provide any information requested as soon as possible and that we usually get only 3 days . I also tell them it may take time and to make sure buyers have the option to extend their lease .
Here are some things buyers and buyer agents should be made aware of :
1. These days lenders are pricing the homes at close to market value so do not expect 'to steal ' the house in some markets.
2. If it is an ' as is ' sale, figure out the costs of use and occupancy permits, possible lender required repairs and other repairs before making an offer.
3. If it is a short sale, if the seller has signed it, it does not mean the sellers lender wil agree to the price and terms. Be prepared for a counter offer. You often have only 3 days to accept , counter or reject the counter offer and you may not receive this counter offer for weeks .
4. Once the offer is accepted by seller's lender and signed off by lender , in short sale,they may expect buyers to close in 30 days..
5. If it is a short sale , do not give notice to your current landlord until you know when you are closing. If you are required to give 60 days notice, you may have to be prepared to lose one months rent.
6.Different lenders have different policies so ask your agent to find out from listing agent about what the lender expects in terms of closing date. You will also receive an addendum from the seller's lender , that you have to sign .
7. Have buyers sign the short sale addendum and make them aware that it is a short sale.
8.If the buyer agent is going on vacation ask them who will cover for them.
9. We may have to work twice as hard when we have a short sale and those who are not prepared to work hard should refer the listing to an agent who will and who has patience.
**********************************
like buttons
Comments
I have found that communication between the listing and buyer's agent is a great way to keep the sale moving. Keeping both the buyer and the seller up to date with every step will help keep both parties on the same page and committed to the transaction. Waiting on and then renegotiation with the lender is a time consuming and stressful process for both sides but a good agent can make it much less painful.