05 Jul Read this before negotiating another short sale
Negotiating a short sale is both an art and a science. Here are 6 tips that top short sale negotiators are using today to close more short sales in less time.
1-You’ve heard it before – submit your package only when it is complete! Incomplete short sale packages slow up the process and move you to the back of the line.
2-Thoroughly document the seller’s hardship. The more convinced the bank becomes of the seller’s inability to pay, the more attractive a short sale is to the bank.
3-Include an engineer’s report to document the repairs needed. An engineer’s opinion carries a certain degree of weight and an engineer will often find repairs needed that you or the seller may have missed, resulting in a fairer short sale price.
4-Secure a buyer that can make a cash offer without contingencies. The best offer is not always the highest offer. Time is of the essence and with an impending foreclosure, a quick closing after approval is highly beneficial.
5-Always ensure a deficiency judgement waiver is part of the short sale agreement so the seller does not owe any additional debt after the closing. If the seller owes the bank the difference between the sale price and mortgage balance, they are likely to walk away from the sale.
6-Include comps of both traditional sales and distressed property sales. The distressed property sales – such as prior short sales and REOs – will lend support to the price you are negotiating and the traditional sales will give the bank an idea of the competition it will face should it foreclose and list the property as an REO.
There’s a lot that goes into negotiating a successful short sale. For any questions about short sales, please contact us at info@onlinehousebuyers, call us at 347-352-0505 or check out our site.