Archives for August 2009

How to Buy a Short Sale in 3 steps?

There are several thing you MUST know if you want to buy a short sale, but it sounds better to make it a 3 step process. =)

1. Check Yourself

If you don’t have the time…don’t get in line…for a short sale that is. If you don’t have at least 2 to 3 months to wait before you need to be into the home, a short sale is not for you. Also if you are extremely picky about what you want for a house, a short sale may not be for you. I typically classify picky buyers with short time frames as “Retail” buyers. They want exactly what they want, when they want and they usually end up paying the retail price for that type of home. A short sale is tailored more for a “wholesale” buyer. Someone who is willing to wait for a good deal, and willing to deal with some of the quarks that most short sale homes have. Retail agents with retail buyers are best off educating there buyers and staying away from short sales all together. Even an “approved price” short sale can take as long as a month just to do a name substitution at the approved price. The retail buyer thinks that if they just offer more money it will go faster, that seems like good logic, unfortunately that’s not how it works.

2. Get an agent.

On a short sale the real estate commission is paid by the bank. If you do not have your own agent or have the listing agent represent you, you are leaving money on the table. The bank has a categorized list of fees they will pay at closing and a real estate commission is one of them. Just because they save in one category does NOT mean they will pay more in another category. That is just not how they work.

2.5 Get an agent who specializes in short sales.

As a buyers agent, 90% of the value provided by the agent is in their strategic understandingĀ  of the short sale process and how they relate that understanding in their offer to the seller. The buyers agent needs to understand that their is a negotiation taking place with the bank and they need to create the necessary loyalty with the seller so that they will know at all times where there offer is positioned in the process. This keeps the seller from flaking out or waiting 3 months and finding out another offer is approved. Every agent has a different level of understanding of this process. Just to illustrate I often have agents calling me on my short sales and asking; “what is a short sale?” ” How long does it take?” “What forms do I use if we want to send an offer?” “They want my highest and best offer, right?” “Why arent you doing a highest and best?” After making several offers and not having any of them accepted they blame it on the short sale process. I have discussed my buyers agent strategy with the attorneys who wrote the WFRMLS forms and was happy to find that this was the intent of the forms. Most agents just dont think beyond priting them out and sending them in.

3. Qualify the short sale.

One you have the right buyers agent for a short sale you will need to qualify each short sale based on the following;

A. How is the listing agent handling the sale?

B. How many liens are there and who are they with?

C. Where is the short sale at in the process?

D. Ohh yea. and IF AB and C check out then you can make an appointment to see if you actually like the house. It doesn’t make any since to fall in love with an unapprovable short sale.

In the end if you have the right agent and are willing to be patient, a pre-foreclosure short sale can be a screaming deal that can put tens of thousands of equity dollars in your pocket!

183 E Ama Fille Ln, Elk Ridge UT

SOLD! Short Sale- Asking 279,900-Short Sale, Subject to 3rd party approval. Bank of America is reviewing offer.

Incredible views of the valley and mountains!

968 N 1530 E Orem Utah

SOLD-Short Sale! Asking 499K Wells fargo short sale, Charter one short sale.

View photo tour at www.obeo.com/472461

2203 North 2475 West Clinton

SOLD!- Auction! 1 Day Sale!!. Starting Bid 139,900!!

This is the deal you have been waiting for all summer!

Incredible price for this home nestled in a neighborhood of homes 185K and Higher!

AUCTION-1 Day Sale Details

Hurry see the inside of this home and submit your bid before September 5th at 5 pm!

ALL BIDS MUST INCLUDE THE FOLLOWING

-All Bids must be at least 139,900
-Actual price may be higher than list price
-$1,500 Earnest money
-Bid must be on Approved real estate purchase contract
-Bid must be submitted on or before September 5th at 5:00 PM
-Max of 30 Day closing required
-No more than 10 days due diligence contingency
-No more than 14 days financing contingency
-*All bids are subject to owner approval
-Owner reserves the right to accept, reject or counter any offer
-Having a Buyers agent is not required to submit a Bid
-Buyers agent commission will not be paid if your offer or bid is rejected

Other items to consider when submitting your bid

Net sales price to seller
-More earnest money will show you are serious
-Fast closing
-Less contingencies, IE all cash or no financing contingency
-Large down payment
-Strong pre-qualification letterĀ  OR in house pre-qualification

652 W 800 N #31 Clinton

SOLD! Asking 134,900!

Great Newer Townhome close to Hill Air Force base. Will sell fast! Must Hurry!