I, like most real estate agents today, have crossed paths with many people who seemed to be getting sucked into the short sale pipeline pipe dream.
Buying a short sale is not for everyone.
First of all, that extremely low listing price is likely not the selling price but rather the "start talking price!"
Of course there is always the chance the low price may just be reflective of the later investment required to repair, fix, update and generally make the house "livable." [However, that is more common with foreclosures!}
Short sales take time. After all, the seller may sign off on your offer but in the end it must be approved by the lender(s). And the lender approval process may take time – months!
A couple of additional tidbits of information on short sales (click the links):
- Difference between a short sale and a foreclosure
- Is there such a thing as a perfect foreclosure?
- REO and Foreclosures are not the same as short sales...
Still, if a buyer is the right buyer - the time, the patience, available cash/mortgage - why not consider a short sale?
For information on short sales in Viera, Florida, call me directly at 321-693-3850 or email me if you prefer.
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.
Read my blogs Florida Homes for Sale, Moving to Brevard County, Florida, and Brevard County Florida Real Estate Information.
I am not looking for short sale properties but I have been encountering struggling home owners who need to sell.
Hi Gary!
Like your post. As a listing agent and one who does do short sales, it is critically important to the success of the sale for the buyers agent to set the correct expectations for the buyer. A few things that must be discussed are:
1. Time frame for bank approval. Likely not for 60 days.
2. Lack of control of the bank. We can't push, screaming doesn't help, they lose information regularly, etc.
3. Concessions are usually requested. That could be agent commissions, waiving the requested home warranty, paying off hoa fees in arrears., etc.
Thanks for the reminders to set expectations.
Diane
Joyce - There are a lot of them out there. I don't do many but when that is your only choice, oh well.
Diane - Seller agents understand and you are right - buyer's agents must set the expectations at realistic levels. Thanks.
Good morning Gary; Recently got certified as a short sale agent and have one in contract now, still a learning process. Interesting.
Kenneth - Congrats on the short certification and business. In this day, it is hard to not handle short sales and stay in business. Have a great weekend!
Come on Gary, don't get so down on short sales : ) True, they can be frustrating if you don't have appropriate expectations, but there are a lot of benefits (for my part of the US anyway) to knowing how to mess with the banks (legally and ethically of course... and mostly their employees).
If any of you come across short sale listings that you don't want work on, you can always find an agent through me. I coach a few hundred agents across the US on short sales and they would be happy to pay you a referral fee (one that you will actually get paid on, because they know how to close these special creatures).
Trent
TheShortSaleGenius.com
I know I would not have the patience to try to buy a short sale. I couldn’t tolerate sitting there day after day wondering what was going on, am I going to get the house. Could I buy a different house and save time? Time is money.
Excellent and well put! R U ready for a short sale?
Not only is buying a short sale not for everyone, but not every real estate agent should be trying to help someone buy a short sale either!
Oh Gary, you hit the nail on the head. Short sales are not for everyone - that's for sure. I have had terrible luck in trying to show these short sales for the past couple of weeks. Not sure exactly what's up. If the sellers don't want to show them, how receptive will they be to getting all their required docs in to the short sale lenders?
Sandy - The shorties are a challenge. Sometimes I question the motivation as well.
Jim - Amen! Nothing else to say as you covered it well!
Laura - I have some in the works...final approval, come on!
Russel - That is it..time is money! Short sales come with so much uncertainty.
I agree with Diane about setting expectations - for buyers AND sellers. I would add a #4. Even if you patiently wait out the process, you may not end up selling/buying the house - - In addition to the Seller's lender negotiating the contract, they can also deny the short sale.
Terry - True. The lender can forgo short sale and foreclose if necessary.