Short Sale Negotiations

Ok, so by now the vast majority of Homeowners realize that a successful short sale is heavily reliant on the experience of a Realtor. And Realtors realize that it's easy to find a short sale listing but they know the work is long, tedious and may very well end up falling through. For the Realtor this means working sometimes many months for free. What we have found at EC Advisors, is that the short sale "negotiation" is the key to having success and closing the deal. Just as the pre-qualification, is vital to the success of a loan modification, so too is the effort and communication behind the short sale. The listing, the right price, the BPO and a quality negotiator makes all the difference. When the Realtor (and/or the homeowner) set unrealistic goals for the sale, it often falls short, (no pun intended). When all parties have realistic expectations and together work for a common goal - it more often that not results in success. Here are some examples of working together:

1. The Realtor should spend the appropriate time with the homeowner gathering information and setting expectations about the process up front prior to signing the listing agreement.
2. The SS package should be completed and submitted to the bank in a timely fashion.
FYI - many banks are now requesting that a modification be attempted and documented before they will accept a SS package.
3. The homeowner has to be involved in the process and committed to keeping the home in optimal show condition. If the homeowner is ready to walk away and is only listing in the hopes of getting lucky, they won't.
4. The homeowner needs to open to showing the home with 2-3 hour notice. If a buyers agent calls and requests a showing, the homeowner should jump into action, clean up the home and allow them to show it. Many people miss opportunities to sell by being lazy and unmotivated to put the effort into showing the home.
5. Similarly, the homeowner should keep the property up. There are so many homes on the market, the key is making your home show better than the one down the street that likely has been empty for 2-3 month. This is not hard to do. But does require participation by the seller.
6. Be patient, the process takes time. But if all parties are doing their job, and the Realtor has a strong negotiator calling the bank once the offer does come in, it is possible to close on short sales in 90-days.

EC Advisors provides objective advice and education to partners, affiliates, and homeowners. Please don't hesitate to call or email with questions.