An informed buyer is a good buyer, and short sale buyers need more and different information than buyers of conventional properties. One of the top two reasons why short sales fall through is that the buyer “WALKS.” Why do they walk? They walk because they get fed up and tired of waiting – regardless of how good the deal may be. This cannot always be avoided, but the chances of it happening with your buyers can be reduced by giving them the right information.
Just because a property is being offered for sale does not mean it will ever go to settlement, but a salesperson can certainly enhance the chances of settlement by gathering the facts before they offer the contract. Here are some facts to gather from the Listing Agent to help inform your buyer clients. Note: prior to asking these questions, it’s important to get permission from the buyer to ask them, and the Listing Agent will need to get permission from the seller to answer them. This is just the right way to do business.
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?
Excellent advice from Leroy.
Tucker Griffin Barnes P.C.