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Judy Cook,  in 95603

I'm interested in knowing what is the biggest fear buyers have when it comes to buying a short sale property.

Asked by Judy Cook, 95603 Sat Jun 26, 2010

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Fear of the unknown drives most human behavior. Short sales have more than their share of unknowns. And some agents (in their years of wisdom) require a buyer to perform inspections and in many cultures, including mine, this is unethical. Since more listing agents are doing this, I advise my buyers to avoid those.
0 votes Thank Flag Link Sat Jun 26, 2010
The process is very opaque and very flawed. No argument there. Unfortunately our inventory is heavy on short sales in the lower price ranges. To give the best service and understand things to better educate my buyers and serve my short sale sellers I took the class and got the SFR designation. My mantra is now "If you are going to do a short sale, do one with an SFR who understands the process (as much as anyone can understand what banks do!) and will help both buyer and seller navigate this tricky situation. Anybody else out there want to say what they are doing to make short sales easier to handle?
0 votes Thank Flag Link Tue Jul 27, 2010
1. That they will never get the house at the price the "seller" accepted or that they will get the house at that price and then:
2. Some big defect will be discovered at the inspections and nobody will pay to fix it

oops that's two fears! and as we all know we could fill a book.
0 votes Thank Flag Link Tue Jun 29, 2010
The biggest fear.....logically, whether or not they will ever hear from the bank............
0 votes Thank Flag Link Mon Jun 28, 2010
There are several, as noted below the waiting can discourage buyers. However, lenders are moving faster than they were in the past. Although, they are overwhelmed with the number of short sales they seem to be getting the process a little more organized. Another is the list price may not be what the bank intends to accept for the short sale. Your buyer may offer list price and the bank may ask for a higher price. If your buyer isn't willing to pay what the bank is asking then they waited all that time in vain.
0 votes Thank Flag Link Sat Jun 26, 2010
Judy,
I believe, as Scott does, that the Buyers' biggest fear is the fear of loss. One of my old real estate teachers once said that "the fear of loss is a bigger motivator than the prospect of gain." I really believe that is true in any market, but especially in this one where short sales predominate and Buyers wait for months for a response from the Seller's lender. Meanwhile, anything can happen.

All the best,
Maggie Hawk, REALTOR
(386) 314-1149
Watson Realty Corp.
0 votes Thank Flag Link Sat Jun 26, 2010
I make an offer on july 12. On sept 26 I get a reply of no, the bank will not accept your offer.

Did I mention the offer in july was in 2010 and the reply was in september 2011?

Sometimes I forget to point out a little detail like it was over a year to get a no reply while I missed out on a lot of other houses.

It happens. Why should I bother to make an offer that will not even be looked at for over 2 seasons if the bank moves fast?
0 votes Thank Flag Link Sat Jun 26, 2010
I know my buyers fears are with teh time it takes for them to get approved. That they may lose something else while waiting for teh approval. the other fear is waiting for months to only have a new offer come in and then things start offer asking for new higher offers.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Jun 26, 2010
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