Last post we disussed the importance of selecting a REALTOR® that has both the time and experience to market your property for short sale approval. Today, I would like to explain our Short Sale Marking Program in general, and of course would welcome the opportunity to discuss in more detail with you.
In general lender(s) usually want to look at one strong offer rather than get into a multi-counter offer battle with multiple buyers. Each lender is different, but the majority of short sale approvals are like this, leaving the listing agent to determine the best offer to submit for approval.
Usually this means cash or higher down payment lower loan amounts rule. Buyers with VA or FHA offers are usually passed up for lender requirements and appraisal conditions. I have recently represented many of these Buyers, and I can tell you it is very challenging competing against the strong cash or low loan ratio buyers. It takes experience on your agents part to know how to choose the strongest and best offers.
Even a normal seller wanting to be on the market is difficult. You have people wandering through your home day after day, last minute calls for showings, and having to keep the home looking as good and clean as possible. Our marketing program involves a technique that will eliminate as much of this hardship as possible and generate the maximum pool of buyers in a given marketplace.
Each home and marketing plan is different, but we find the following to be effective for today’s marketplace. First, your home is listed for sale in the multiple listing service including full pictures and details including showing and offer procedures. Second, your home is placed on Broker Caravan to expose it to as many local agents as possible. Flyers and marketing material are available for them to take to interested clients and prospects.
Then, with the approval of the Seller, I suggest that we have a small period of time before considering offers. For instance let’s say that you list the home on Wednesday, and then have the broker caravan on Thursday. The MLS printout and agents calling for showings will be informed that the Seller will consider offers presented on Sunday and will respond on Monday. This gives everyone the option of putting their highest and best offer together, gives them adequate time to have a lender prepare a loan qualification letter at the offered price or verification of cash funds, and gives everyone a fair chance.
I call this exposing your listing to fire. The most powerful tool that any REALTOR® can offer you, is to expose your listing to the multiple listing service. None of us knows where your buyer will come from, which agent is out there working with that buyer. Rather than trying to double end a transaction with dual agency, exposure to the maximum buyer pool is in your and the lender(s) best interests.
Careful attention is given to initial market price, complete MLS data including maximum pictures and feature list and showing information. You would be surprised at the lack of attention to detail or missing pictures on many listings on the multiple listing system – Sellers would be well advised to check on their listing to make sure it is complete.
The advantage of this system is it gets you on and off the market fairly quickly. The last thing you need in these times is to be constantly cleaning and entertaining prospective buyers that may not even be qualified to purchase. Once we have selected the best offer, we take your property out of active status and place into pending status. The lockbox is removed and you don’t have to go through more showings.
Short sales can take anywhere from 60 days to 6 months to get lender(s) approval. Success lies in the ability of the REALTOR® to work closely with the lender(s) in moving the approval process forward. The lender will have Broker Price Opinions or appraisals done and will consider their option of the short sale approval vs. the foreclosure process. They should decide based on the best option for them. Unfortunately, I cannot always say that happens as most lender(s) short sale and foreclosure departments don’t work together.
On a personal note from an unexpected job loss and a recent divorce, I can tell you I empathize with your situation. The best advice I can give you is take some action rather than let the process paralyze you. Options exist and realize that you’re not alone.
I invite you to call 858-352-8280 or e-mail me should you wish to discuss my marketing plan in more detail. I have foreclosure software to determine where you may be at in the process and we can start the process of you moving forward in ACTION.
If you want to know more about RealtyV2 visit our Client Bill of Rights. If you wish to know more about Jeffrey visit his Linkedin Page for professional resume and references, or check out what others are saying about me.
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