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By Luetta Newnam, Broker | Broker in Scottsdale, AZ

Looking for Tips on Making Offers on Short Sale and Bank Owned Properties

Any tips aside from the obvious on submitting Offers on Bank Owned and Short Sale?

1) Who is the person reviewing the contract? I have had Agent 's say first the homeowner then the bank as well as Lender only.

2) Time frame for acceptance? My experience so far, 24 hrs to 10 weeks.

3) What makes the Offer stand out? I was advised to insert a blamk page if your client is missing information.

4) How many Offers are typically considered? Some say 3 some will not disclose.

5) Can Offers be submitted on other properties when an acceptance time is lengthy?

6) Do Lenders take it or Leave it or do they Counter?

7) How do you handle pre-offer inspections ie. utilities being turned on?

Comments

By Scott Slocum,  Mon Dec 8 2008, 20:17
Florida Future Realty Inc. Cape Coral FL has had great success at negotiating and closing Short Sale Pre-Foreclosure homes and properties this past year.

1) Who is the person reviewing the contract?
1st to review the offer is the Realtor it is then presented to the seller. If it's not in line with comparable sales we have our sellers counter the offer to something more realistic. Once we have an offer that looks good we submit it along with the stack of other documentation to the lender for their review. Many people at the lender may be look not so much at the offer but the HUD-1 showing them their net.

2) Time frame for acceptance? We place 48 hours on the offer. Keep in mind this is for the "seller to accept" We then put the closing out 45 to 60 days. We have a Short Sale addendum that outlines additional timelines.

3) What makes the Offer stand out? A table of contents, A letter stating that your file is complete from A to Z, having everything that the lender is going to need to make a decision.

4) How many Offers are typically considered? Only ONE !!! Have you seller accept and sign off on the best offer of those presented and submit the highest and best. It's not up to the bank who the property sells to... it's up to the seller... the bank is only releasing the lien the third party approval.

5) Can Offers be submitted on other properties when an acceptance time is lengthy? I think you're asking for trouble and could potentially be obligating your customers to perform on more than one property at a time. We have curbed this tactic requiring an escrow deposit on offers signed off on by the sellers for submission to the lender.

6) Do Lenders take it or Leave it or do they Counter? Lenders do all of the above. They are at times willing to negotiate. Send them your comparable sales also.

7) How do you handle pre-offer inspections ie. utilities being turned on? The seller of the property turns on the utilities prior to closing once an approval comes through. Most of our buyers do a generic walk through and get a feel for the property but prior to laying out $300 to $500 on an inspection they want to know the property is going to be there own.

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