Short Sales...Why Do They Take So Long??

Is this what you feel like when trying to deal with short sales or foreclosures?  They can be frustrating but the balance of how much you can typically get off the price for a home and the amount of time you wait is worth it most of the time.

Items that can make the process seem like it is taking a long time is the submission process for the listing agent.  They have to gather a lot of information in a short period of time and submit the entire packet in full before the bank will even look at the offer that was submitted.

A buyer must understand that just because the seller of the home accepted their offer, doesn't mean the bank will accept the terms and price of the offer.  They will most likely be renegotiated.  Everything from the bank will also be verbal.  No offers are final unless they are in writing!!  Don't believe that you have an accepted offer until you have the banks signature.

There are a couple of items to consider when looking to purchase a short sale.  Here are a list of 7 questions that you should ask to your agent or the listing agent:

1. How many offers are being “pended?” Would you get the buyer involved if there were 10 offers already being “pended?” It’s up to the buyer.

2. How long has the property been on the market?

3. How many short sale transactions has the Listing Agent completed?

4. What is the average price of the last five traditional listings that have sold in the marketing area?  Why put a buyer through the process of buying a Short Sale property when you could find another property at the same relative price that is a traditional listing?  One of the main attractions of a Short Sale property is the PRICE!

5. How many payments has the seller missed? It takes time to complete these sales, and foreclosure could take place prior to a short sale transaction being settled. It’s important to know how long it takes for a property to be foreclosed on from the time of the first missed payment until the “foreclosure sale.”

6. How many second or “junior mortgages” or liens are on the property? Junior mortgages can be a real deal killer.

7. What’s the contact number for a Home Inspector who can inspect the home on a short notice?

Thank you to Leroy Houser for most of this information!  He is the leading CRS instructor on short sales and foreclosures.

Happy shopping and let me know if you have any further questions about short sales! 

The real estate consumer is not always right?

In today's market whether you are a buyer or seller, the market is ever changing. Whether you are selling your home and the agent you hired didn't give you the actual market value but instead took the price that you want to ask for the home or you are a buyer looking for a deal in this market, hire an agent that is going to not only help you every step of the way, but who will truthfully state the market value and what your options are in this market.

Every market is different and sales can vary from city to city and even neighborhood to neighborhood. Real estate professionals know this best and deal with the market everyday. In Teresa Boardman's article: " The real estate consumer is not always right", she states that "when we go along with what the customer or client wants, we are not acting in the client's best interests, or even in our own. And that rule applies to matters other than price, too."

Buyers and seller's have access to an enormous amount of information and TV shows that cover all facets of real estate. Whether it is someones first home or a renovation over haul show, most consumers take what happens on these shows as the truth in their area.

A Realtor has access to and works in the field every day and can provide you with correct data about your home or a home you are looking to purchase. The market may not be for everyone right now but you have to assess your situation and your personal economy to determine what is best for you.

I would personally enjoy working with someone who tells me what I need to hear rather than what I want to hear. It may be scary or hard to listen too, but it is more respectful if I get the truth.

What type of Realtor would you rather work with? I would love to know your thoughts!