Ok, so perhaps that’s not quite what comes to mind when thinking of short sales. Maybe we could have said, “Cloudy skies, sauerkraut, and definitely no pot of gold”…and perhaps that would be a much closer alignment with your idea of short sales.
Well, this really isn’t about the “nuts and bolts” of short sales. If you want the technical information, then you can go to AZ Short Sales Experts. Or better yet, just contact us and we’ll be happy to tell you all the ins and outs.
This is really just a bit of “encouragement” to let you know that short sales are not impossible and they can be done.
There’s nothing worse than talking with someone, mentioning a short sale and getting that dreaded drop in their voice “Ooohhhh”. You’d think we said that they need to offer their first born in order to get the home. Au contraire!
The key to a successful short sale is working with a listing agent who knows what they are doing. There are way too many agents out there who either don’t know or don’t care about doing short sales, but they take the listing anyway, just to get their name out. There are a multitude of questions that need to be asked to be sure that they understand the process, and if they are unwilling to answer the questions or don’t seem to know what you’re talking about, then run do not walk for the nearest exit.
Second, you need a willing and “able” seller. So how do you know if you have a willing and able seller, well that goes back to the listing agent. If they’ve done their homework, they should know if this seller can and will close on this transaction. It’s actually the number one reason that short sales do not go through: Sellers who cannot or will not perform. Oh, and you thought it was those big mean banks…not so!
And finally and most importantly, you need a great buyer’s agent. In our internet age where everything is available at the touch of a button, many people think they can just run out and purchase homes on their own. If this were still the good old days when regular home sales were abounding, we might agree (we stress might). But short sales are an entirely different ballgame, and you need someone who understands how they work and how to keep everyone on the same page, in order to bring you to a successful close. We know that they can be tedious, so you need someone who can help walk you through the minefield, uh…process. (Just a little humor…ok…very little).
Most typically we hear this line about short sales, “I don’t know much about them, but what I do know, I don’t want any part of them. You wait and wait and then many times in the end you don’t even get the house.” Well, as one who has just purchased a home via short sale, I can attest personally that YES, they can be done. True, it did take 3.5 months, but I just closed another one and it only took 2.5 months. That’s VERY fast for short sales, which can still take anywhere from 3 – 6 months (depending on what lenders you are dealing with).
Even if you are someone who is on a short timeframe, at least have your buyer’s agent ask, ask, ask…as you never know if the situation has changed – and they change all the time. Buyers do get tired of waiting and sometimes do find other homes. Things happen while they are waiting and maybe they can no longer get financed or just decide that they don’t want to purchase at this time, so at least try to find out the status before saying, “No, no short sales, ever!”
Our favorite thing to hear from listing agents is that the Broker’s Price Opinion has been done and they have bank approval…but the buyer just walked away. Perfect! These are ready to go and you can usually close quickly in these situations.
And here’s another one we hear, “Well, you put in your offer and then find out someone came along and outbid you, so you still lose the home.” Again, this does not have to be the case. If you have a buyer’s agent who knows what they are doing, they know exactly where to strike the lines in the contract to make sure that no one beats you out for the home. And more and more buyers are now opening escrow (even before they have lender approval), as this will definitely hold you in first position. It’s the seller’s decision as to whether the earnest monies will be refundable or non-refundable, but all these things are negotiable.
So…you say you’re still not convinced. Well, the truth is that short sales are not for everyone. If you know you have zero patience and you absolutely need in a home in a 30 day timeframe, then you need your buyer’s agent to focus on foreclosures and the highly coveted “regular sale,” but be ready, as short sales are pretty much the norm in the Phoenix area.
And finally, don’t immediately shudder every time you see a home is a short sale. Yes, you might have to wait a bit and yes, there are ups and downs in the process…but just remember that this could be your own Sunshine, Lollipops, and Rainbows…with your personal pot of gold at the end…your brand new home!