Oct 11, 2022
You may increase the likelihood of your offer being accepted by the seller in a short sale by taking steps like submitting an initial, clean offer. However, even if you adhere to every piece of advice for making a short sale offer, you still cannot be successful for this reason that there is a crucial consideration that is often ignored. A short sale, in which the lender receives less amount than is owed, involves more than just the seller and the Purchaser. In addition to it, there's the lender & also the listing agent. Be sure to keep these in mind.
Offering the seller more time to vacate the premises is a strong negotiating position to take. In a short sale, you are not permitted to give any further financial incentives to the seller. This is due to the fact that the bank's arms distance deal bans any benefits or hidden contracts between the Purchaser and the seller. This is done specifically with the intention of barring the vendor from short-selling his house to a friend or family.
You also won't be able to sway the lender's decision. The financial institution will act in a way that it determines to be in its own best financial interest. Period.
However, you may also have an impact on the listing agent, who is all too often forgotten in short sales. When deciding which proposal to take, sellers often consult with their agents. You may differentiate yourself from the competition even if all of the offerings are otherwise the same. Facilitate the workload of the listing agent. There is absolutely no tension here. Simply said, there are no problems. The goal of real estate brokers advertising short sales is, of course, to make a transaction. A serious buyer, especially one familiar with short sales, is necessary to bring the transaction to a successful close.
A skilled buyer's agent will use these strategies to win over the selling agent and persuade her that the Buyer is serious about making a purchase and will be a pleasure to work with:
This is a major deal since it forces the agent to take time out of her busy schedule to notify the Buyer's agent. Inform the listing agent that you won't be pestering her with emails or phone calls until she contacts you to let you know she's received the loan acceptance letter from the financial institution.
The selling agent will be relieved to hear that the Buyer is well-informed and represented by a competent agency. Getting through a short sale might be a lot of work. The Purchaser's agent and the Purchaser will have no queries for the selling agent, which will make her very pleased.
No listing agent likes to learn that the Purchaser has given up after spending three months working on the short sale. She hopes to avoid having to list the house for sale again. You just need to see it once.
A purchaser who has placed good-faith money that will be used for the deposit is much more inclined to be devoted to the transaction and also to wait for clearance than one who declines to provide a deposit. It says a lot about the Buyer's personality. When it comes to a property that is difficult to sell because of its age, size, pricing, physical state, or market conditions, a purchaser's interest that is confirmed with a willfully compassionate deposit in advance will be viewed favorably and benefit the bargaining. This is especially true of a situation in which the Buyer is expressing their interest in purchasing the property.
In a short sale, it's impossible to predict what the lender will do. It's possible that the bank may want extra payment. It's possible the bank may refuse to allow you to charge a fee. It's possible that the second lender may ask for a higher down payment. The lending agent is more likely to deal with a buyer who is prepared to be open and cooperate with the lender and perhaps even lending institutions. In a nutshell, what you're saying to the selling agent is: "You know how terrible things can become when dealing with potential purchasers in a short sale? The aforementioned undesirable events will be avoided if you accept my short sale offer." What reasonable person could argue with that?