Real Estate: 10 Strategies for Short Sales (2/2)

Tips for real estate agents:
How to Sell a House When Seller Cannot Pay Off the Bank

Part 2/2

6. SET THE RIGHT PRICE.
Price the home at least 5 percent under market. You have to give the buyer compensation for the inconvenience of the Short Sale and a reason to wait. Price it even further under the market if the foreclosure is right around the corner. Negotiate by creating a sense of urgency in marketing materials and on the MLS. Most banks will accept as much as 10 percent under market.

7. PRESENT ANY REASONABLE OFFER.
This gets the waiting period started. Submit the offer and let it be working as you’re waiting for the file to be assigned. Some real estate commission mandates that you have to disclose any other offers that come in. If you get someone with a back-up offer now, the process is easier. If you submit another offer, call the people who made the original offer to let them know and give them an opportunity to update theirs. There is very few situations where the first people to make an offer didn’t get the property.

8. CALL EVERY WEEK.
Without agent calling the bank, no one would know the file is still in limbo. During the calls, establish rapport with the lender representatives and be nice. It’s very frustrating to call every week and have them try to get you off the phone, but they do take notes and put notes in the file. If you’re a jerk, they’ll note that too. Think about getting the borrower on the phone with you and the loss-mitigation negotiator to humanize the situation.

9. NEVER INCLUDE PERSONAL PROPERTY IN THE SALE.
Treat the sale of appliances, playground equipment and other items as a separate transaction. You don’t want any money unnecessarily going to the lender. If the seller doesn’t need these items, you can have the buyer purchase that property to give the seller money to move or to pay down a second mortgage.

10. TEACH OTHER AGENTS ABOUT SHORT SALES.
The seller’s credit isn’t damaged as badly, the seller moves with dignity, the buyer gets a home that’s in better shape than an REO, the neighborhood is saved from vacancies that leave properties at risk of damage, the bank gets more money sooner and reserves aren’t wasted. If you meet agents who don’t want to do Short Sales, turn them into a referral source. You’ll gain a reputation as a Short Sale expert.

Go to part 1/2