Home Buying in Murrieta>Question Details

Randee Bidari, Real Estate Pro in Chino, CA

What % of buyers walk away from a short sale?

Asked by Randee Bidari, Chino, CA Fri Aug 5, 2011

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Hi Randee, I would say 65% of the original buyers walk before the short sale is approved. Many buyers are submitting multiple offers and will accept the first offer that responds to them. One would think lenders could speed up the short sale process.
Web Reference: http://www.ajsocalteam.com
2 votes Thank Flag Link Sun Aug 7, 2011
if you can get the data that said "property started out short sale but ended up foreclosed" that would translated to what % of buyers walk away from a short sale (some what).

65% of the original buyers walk before the short sale is approved.
35% of the original buyers walk after the short sale is approved with a counter offer from the bank. :))))))))))))))))))))))))))))
1 vote Thank Flag Link Wed Aug 17, 2011
It is difficult to say what percentage of buyers walk away from a short sale. We are short sale specialists. Part of our service is a weekly followup to the buyers agent with an update on the short sale status. Generally, if the buyer is serious and they are being updated they will stay in it until the file closes. However, most agents do not update their buyers agents and the buyer thinks that their offer is forgotton. These buyers will get impatient and try to find another home. If you are looking to list your home as a short sale, we close 99% of our short sale listings. We are happy to help you sell or purchase a home when you are ready. Thank you for your question.
Web Reference: http://www.superzinggs.com
1 vote Thank Flag Link Wed Aug 17, 2011
Hi Randee, here in our part of town it seems I lose about 80% of original buyers on my short sale listings. I typically market for 3-5 backup offers when short selling to compensate for the 20% that walk,or don't qualify.

Thank you,
Jory Blake
theJORYgroup @ Keller Williams Realty

951.742.3751
Web Reference: http://www.theJORYgroup.com
1 vote Thank Flag Link Sat Aug 6, 2011
This is not an uncommon scenario at all. If you don't like the deal or it's taking too long they simply say.....................NEXT!. Especially more sophisticated investors who just refuse to get drawn into a lot of needless minutia.
1 vote Thank Flag Link Sat Aug 6, 2011
Randee,

Not sure anyone has tracked the percentages in any grand way, but you've gotten some good info below - one lender deals have a much better chance to close than multiple lender ones do, but as also pointed out below a good percentage of buyers just get tired of waiting.

The other thing that can make a big difference is how much experience the agents/brokers on both sides have with short sales. An agent who has experience and properly sets expectations on the front end will likely have buyers more prepared for the process and thereby more likely to close.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
1 vote Thank Flag Link Sat Aug 6, 2011
Your upfront research and homework can make a huge difference whether a buyer will walk or stay the course. Contact the title companies, research lender policies, question the listing agent as to what communications they've had with the lender(s). By the time you are done, you should have a pretty good idea of what you are looking at in terms of time, effort, and length of transaction. Then feel your buyers out for committment.

An hour or two of homework can make a difference in the outcome of your transaction. I would rather spend the time up front than have a cancelled escrow 5+ months later!
1 vote Thank Flag Link Fri Aug 5, 2011
Hi Randee, Most do they can't stand the wait and usually if there is a 1st and 2nd on the home it almost never goes thru. We do have one couple that has been waiting over a year for a property and the banks agree then turn around and make impossible deadlines.. it's crazy...

Dave & Lisa
Web Reference: http://www.urhomerealty.net
1 vote Thank Flag Link Fri Aug 5, 2011
Anyone with the temerity to vision the future will refuse to buy real estate at today's mark-to-make believe prices.
0 votes Thank Flag Link Sun Aug 7, 2011
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