If you are a short sale buyer’s agent, it can often be frustrating waiting for any scrap of information for your buyer.

But just how often should you call the listing broker to check for status?  I get a wide variety of buyer’s agents selling my Destin Florida short sales.

Agent Mellow:  He might contact me once a month to find out how the short sale is progressing.

Agent Never:  He never contacts me during the approval process.  I will send him updates, but if I don’t, he’ll just be “surprised” when I forward the final approval.

Agent Antsy:  He emails me almost every day.  Any word? Is the appraisal back? Do you have approval? Etc. Etc.

Agent Even:  He calls or emails about every week or two.  He is on a program.  He might check in more often if his buyer asks.  But he tells his buyer in advance how often he’ll provide an update.  This is the guy to emulate.

If you are a buyer’s agent and sell one of my Destin short sales, feel free to email me once a week.  Don’t call on Monday – it is the highest volume call day for short sale lenders.  Thursday or Friday is a good day.  Prepare your buyer about the short sale process.  Let them know how often you’ll be getting updates. 

Work as a team with the listing agent and keep your buyer in the loop.  That way, everyone will be cool and prepared when you finally get approved!

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog

The post How Often Should You Call the Short Sale Listing Agent? first appeared on Rulnick Realty.

I have read many of your articles regarding Destin real estate and  short sales.  I have made an offer to buy a short sale in October and we are still waiting.  The house is brand new, it’s listed for $799,000.  The builder owes over $700,000.  The house is not finished, it needs countertops, appliances, driveway, painting, finish hardwood floors, etc.  Approximately $100,000 is necessary to complete house.   A home 2 doors down just sold for $540,000.  This new house is the nicest house in the development but definitely not worth $800,000.    In our opinion even though it is the nicest house it probably is still not worth more than $600,000 to $650,000 that’s if it was completed.

I originally offered $500,000 but now want to reduce my offer to $450,000 since it needs $100,000 to fix up and the Destin real estate market is still falling.  The negotiator is assigned and they will do an appraisal or BPO within 30 days.  I feel $450,000 is fair given the changing market. Do you know typically how much Countrywide will go below market value, especially on an unfinished house?

Thanks,

Joe

Hi Joe,

Countrywide will not “really” go much below market value.  They will rely heavily on the Broker Price Opinion (BPO) or appraisal, as I wrote in ‘Short Sale Pricing: The “X Factor”‘ and will want close to that figure. Their calculations will depend on who the end-investor is on the loan, and those specific requirements.  For example, if the loan has mortgage insurance (MI), they might want the “Net Proceeds” to be 91% of appraised value sometimes! One thing you cannot control is the BPO or appraisal, but you can inform the party doing the appraisal of cost estimates to finish the house.  That may help keep the end figure realistic.

If you reduce your offer now, Countrywide might close the file.  That will depend on the negotiator.  Sometimes Countrywide relies on a valuation they have in their system already, and if the offer is below it, they will just cancel the file.  Then you will have to start all over, and again risk the file being cancelled because you are too low.

Your concerns make sense and are valid.  If you think you are overpaying for a property, I’d use caution.  Best of luck.

The post Destin Real Estate Buyer’s Short Sale Concerns first appeared on Rulnick Realty.

   “Yes it is a long time and they do understand the contract but they are not obligated to the contract until the bank responds.”

  “It was contingent upon the banks acceptance of the offer and the bank did not accept the offer yet.  We did not have a contract only an offer.  I do not see the need of a letter or a release of contract since there was no contract.”

 My question to these, and other agents, is, if it is not a contract, what is it?  Of course, it is a contract.  Contracts have contingencies all the time that require action by third-parties.  For example, the buyer’s lender must make a decision on the borrower’s ability and the value of the home.  The buyer’s home inspector will provide data on the home’s condition.  The title agent will determine if there is marketable title.  These contingencies do not negate the fact that there is a contract.  But any one of these factors can initiate a termination of the “contract”.

 What steps can listing agents take to ensure their seller is protected from “escape artist” buyers?

1.  Require buyer contingencies to be fulfilled without waiting for lender approval, such as home inspection and mortgage application.

2.  Require an earnest money deposit (called escrow in some states) upon acceptance by the seller, not upon lender approval.

3.  In return for buyer’s forthright investment in the contract, place the property “under deposit” in the MLS system.

Until selling agents educate their buyers about the gravity of being in a contract when buying a home, we will continue to see short sale contracts fall apart.

The post When is a Contract NOT a Contract? first appeared on Rulnick Realty.

Property:  House in Navarre FL   List price $114,000…verbal offer $70,000

Property:  Condo in Sandestin FL  List price $580,000…verbal offer $500,000

Property:  House in Niceville FL  List price $199,900… verbal offer $120,000

Is this a trend?  In each of these cases, the selling agent said the buyer absolutely would not or was not qualified to go higher than the verbal amount.  I wonder then why these agents were showing properties to buyers that were up to 60% higher the maximum price buyers were willing or able to pay?  In one case, the buyer was going to make an offer without seeing the property, and then wanted an “out” written up contingent upon a satisfactory pre-closing inspection. His agent even asked me how to draw up contract language so the buyer would not lose his deposit if he chose to back out.

First of all, as an agent, why waste your time?  Sure, some short sales or traditional sales are overpriced so that one might be able to procure them for 20% less than list, but 40%?  Why take that gamble?  When a buyer requests to see properties much higher than they are qualified for or are willing to pay, you are wasting your own time, the buyer’s time, the seller’s time, the short sale lender’s time, and the listing agent’s time.  In the current economic situation, I understand why many agents want to grasp at any possible way to make a sale.  However, one might be better off waiting for a qualified buyer whom you know has a reasonable chance of closing.

The post Short Sale Offers- Is This a New Trend? first appeared on Rulnick Realty.