Lisa and Jim's Northern Nevada Real Estate Blog: I've Found the Secret of "Short Sale" Success!

I've Found the Secret of "Short Sale" Success!

I think I've unlocked the secret to actually making money with short sales!  I've worked hard all year on a variety of "Short Sales" with a variety of circumstances and a huge variety of lenders. 

After 6 full months of diligently pursuing the listings, contacting the lenders, presenting the offers, thousands and thousands of pages of faxed and re-faxed contracts, and following through with the escrows:  these are the final results ... ( Drum Roll Please!!!)

  7  Short Sale Listings.

11  Offers to Purchase.

  8  Accepted Offers that were submitted to Lenders.

10  Different ‘Negotiators" or "Loss Mitigators" or what ever else they call themselves.

  5  Frustrated Buyers who walked after the time for Lender approval had come and gone, usually weeks   and weeks after the approval time had expired..

  2  Contracts still pending that we are trying to obtain "Lender  Approval" on and close.

And ...

  1 (count it ... ONE) Closed Escrow! 

So ... after considerable reflection on the matter ... I have come to the conclusion that the only agents making any money on "Short Sales", are the agents who are teaching and selling the "How To  Make Money with Short Sales" Classes.

Comment balloon 11 commentsLisa Wetzel • June 29 2008 06:28PM

Comments

i have not had a lot of luck on short sales...I will check out the classes...thanks!

Posted by Jeremy K. Frost, Associate Broker, CNE, CRS, ePro, PSA (Keller Williams Realty) almost 10 years ago

Lisa- I agree, if it comes along I will deal with it but I am not going to direct much effort to obtain the listings.

I always warn my buyers its a long haul and I guess many of them stay away.

________________________________________________________________________________________________

Larry Hultberg

Newark Delaware Realtor

Newark Delaware Homes For Sale

 

 

Posted by Delaware Junk Removal Residential And Commercial Hauling Clean Outs, Whole House Clean Outs, Basements, Garages, Attics (Delaware Junk Removal 302-530-9186) almost 10 years ago

Jeremy,

There are a ton of good classes that are cost effective - there are also a lot of very pricey "Short Sales" Systems that are mainly designed to separate you from your cash.  Be careful when choosing.

Lisa Wetzel

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) almost 10 years ago

Oh, c'mon...short sales are fun!

I have had successful closings on short sales.  I have also had a few fall apart - one very recently, with a buyer who waited five months just for the bank to say "No."  That one hurt.

But, they're a part of our business now.  We can't avoid them.  And, on the successful ones, we've save someone from foreclosure.

Posted by Don Fabrizio-Garcia, Owner/Broker/Trainer - Fab Real Estate (Fab Real Estate) almost 10 years ago

Don -You re right and  ... these people need us.  My questions is - when are the lenders going to get a clue.  I lost one sale over $10,000.  Now the market has decined even more - the house has been empty for 6+months - and, in a recent windstorm, the roof blew off.  Seems to me the lenders made a bad bad call and now they are stuck with a damaged property in a weaker market and the burden is all their's now that they forclosed!

Posted by Lisa Wetzel almost 10 years ago

funny..but probably true.... :)

Posted by Konnie Mac McCarthy, Associate Broker - VA & MD almost 10 years ago

Well ... Here's an update!  Make that One pending sale!  We were turned down 4 days ago on one of our pending offers, the lender didn't tell us, and ... they won't counter. So, 60 days only to find out the hard way that we were denied and they won't tell us what they will accept only that the buyer should, "submit another offer."  

This is not fun!!!

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) almost 10 years ago

Lisa - Been there...the lenders won't counter.  They want us to submit only the highest and best offer, and then they will make us wait while they decide whether to accept it or reject it.

A rule of thumb I've found that seems to work:  The offer needs to be within 5% of fair market value.  Offers should be submitted with a CMA showing the value, and this value must hold up after they have an appraisal done.

Also, if it's your listing, submit the offer along with a list of all the price reductions on the home.  Showing that no offers resulted from higher list prices may help.

 

Posted by Don Fabrizio-Garcia, Owner/Broker/Trainer - Fab Real Estate (Fab Real Estate) almost 10 years ago

Lisa - Did you happen to ask them what the BPO came in at?  It's worth a shot.  Often times, if you have decent rapport with your negotiator, they'll tell you.  Once you know the BPO, and who the investor is, then you can work your net offer backwards and get right where you need to be.

I happen to like short sales.  There are plenty enough to go around, and my close rate is pushing 90%.  Read up on my short sale blogs and you may find some info helpful in getting the next one(s) closed.

Posted by Nick Dailey, RE/MAX: Northern Kentucky Real Estate - NKY MLS - Short Sale (RE/MAX Affiliates) almost 10 years ago

Lisa,

I can understand your frustration and I beleive the banks/lenders are going to have to get more streamlined in negotiations and more realistic with their losses.  This is not a problem that is going to go away in a few months yet they act like we are the scourge of society.  They need to figure out real quick that Buyers and Realtors will avoid them in the future if they continue their absurd bureaucratic behavior. 

 

Posted by Hope Cudd (RE/MAX First) almost 10 years ago

Nick,

Two BPO's, One at $180,000 one at $225,000 - They now want to net $203,000, our offer on the table is $197,000 - the sale is tomorrow and the stinker of it all is, one BPO - the higher of the two - was done based on a drive by and the agent doesn't know that there is no garage, it just looks like it.  They never removed the garage doors when they did the conversion. 

I'm hopeful but not encouraged.  We have asked for a postponement of the sale, it's up to the forclosure gods now!

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) almost 10 years ago

Participate