When you make an offer on a short sale listing, the person who will have the greatest impact on whether or not that offer is accepted and you get to close on the property is the listing agent/negotiator. Make sure, your buyer's agent is experienced in short sales. You might wonder why this important if your agent has NO control over the process. What you are counting on is that they will have is the knowledge of how a short sale works, and therefore be able to qualify the listing agent/negotiator and advise you whether or not they (the listing agent/negotiator) know what they are doing. Unfortunately, some agents have an 85% close rate and others have a 25% close rate. Allign yourself with a great agent and you have a higher chance of getting that home you want. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
The listing agent (seller's Realtor) lists the house for sale. Once an offer is received, they present it to the seller (home owner) for their approval. If the seller (home owner) accepts the offer, then the listing agent forwards the offer to the seller's lender for approval. A negotiator is assigned to the file/property. The negotiator is the 'middleman/woman' between the seller and the lender/investor. The lender/investor has the final say in the acceptance of the offer.
As for 'who can you trust', hopefully you have a Realtor you trust. If you don't, you need to interview a few and hire a new one.
Short sales can be very time consuming because there are so many parties involved in the approval process. Also, you have to keep in mind that the lender/investor is going to approve a sale price that is in line with market value of the property, not necessarily the list price.
A short sale will typically have a listing agent in charge. The bank will only allow a short sale if a home owner is deeply under water and in hardship, but to answer your question agents, negotiator and attorney will 99% of the time handle short sales.
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A Short Sale Package must be Submitted alone with your Offer or you are only going to get 10 to15% discount at the most. Your Offer should be 82% of the BPO and the BPO should be at the most 85% market value, you have to remember that this is a Distressed Property and Can't be sold at Market Value. If you wait and buy it at the auction the starting Bid well be 68% of the Loan that is Foreclosing, so 70 to 73% of that is what your Offer should be.
The Agent is trying to swing the Highest price, But you have to Remember that the Agent is not representing the Bank, that is where the problem is. I say Good Luck. If you want a Good deal try looking at the Approved Short Sales because if an Investor Re listed the Property then you can negotiate a lower price than the Listed price. Oh Yes I am also a Realtor.
The person who has the Authorization to Release Information is the Party that has Control, Remember this, the Homeowner has all rights to the Property until the Bank takes it back. not the Realtor I have a Buyer that has his lawyer do the Negotiation and he gets a better discount than I or any Realtor can get.
All I know is that for some reason the Realtor thinks he or she is best suited for that job, when you buy a house you say what your terms are.
If I am buying a Car an I want it in Blue and the Dealer makes me take it in Red and 2 yrs older, who spent my money the Dealer or me.
Who's in charge of a short sale: Ultimately the bank, they need to accept the terms. But it's up to the listing agent to guide the bank to find current value by working with the appraiser they're going to send out. Better yet, if the buyer is in primary position with their offer, I strongly suggest the buyer, NOT wait on the bank to send out there own appraiser but to order their own & have the listing agent submit it with the initial short sale package.
On Short sales I always say, 'it's the buyer & the listing agent VS. the big bad bank".
On High Value properties specifically, potential problems could be: The seller has money, but is strategically short selling. The seller needs to be in a position to do a cash contribution, it may be highly likely they're asked / told to do so by the bank in order to be fully released of the lien. Finding out if the owner has equity loans is very important.
Email me directly, I can give you more valuable information & help you out.
Realtor Since 1996
Short Sale Expert
Most important, in my opinion, is to make sure that an attorney or negociator experience in short sales is overseeing the process.
Realtor, GRi, SRES, SFR (Short Sale Foreclosure Resource)
Please see my blog for a full list of tips and advice on buying a short sale.