I want to share a celebration in my success with you all. The success of closing one of my short sales is credited mainly by my persistence and unwillingness to take NO for an answer.
I had an offer negotiated with a seller's lender, awaiting a buyer to return from over seas to close. We needed to close a few days before the end of the redemption period so that all paperwork could be filed and sent to the proper authorities in time. Unfortunately, this buyer backed out of the deal as he wasn't sure if he'd be home in our tight timelines to close and thus cancelled two weeks before closing. During my typical attempts to obtain another buyer, in such a short period of time, I was able to find an agent that had a few buyers watching the property and able to purchase quickly. All the pertinent pages were sent to my negotiator with Wells Fargo, with what seemed like plenty of time to get a supplemental approval letter as the new buyer was purchasing the property for the same amount as the old buyer. My negotiator didn't respond for four days, only to tell me then that there wasn't enough time to get a new approval letter from the investor.
In this line of the real estate business, it pays to be persistent. I didn't take 'no time left' for an answer from my assigned negotiator and proceeded to call as many people as I could to explain the situation at hand. I am lucky enough to know a branch manager with Wells Fargo that conveniently had a contact in the 'higher ups' departments of the company. We spoke briefly about the what was needed to close so that the home didn't go back to Wells Fargo in the end. After she took the reins on the situation, I was sent a new approval letter to close the very next morning!
I am still very proud that I was able to get the property closed, just in time for the sellers and will continue to ride this great feeling of success well into 2012. Positive thinking and persistence will always get what you want in life and your business, so long as you believe in yourself. If you know of anyone struggling to get an offer negotiated or is apprehensive at successfully selling their home, pass along my name and number as the chances of my being able to do what others can not is very great!
Wednesday, December 28, 2011
Wednesday, December 7, 2011
Requesting Repairs of a Short Sale Seller
I had an offer presented to one of my sellers, who's selling their home as a short sale, requesting the seller to do a lengthy list of repairs. Most buyers do not request repairs of a short sale seller and rarely do they request repairs of a bank until after the appraisal. I wanted to discuss the situation briefly, to help buyers out there understand how to approach repairs when it comes to short sale properties.
Because my seller's financial situation is where it's at, along with most short sale sellers, my seller does not have the means to correct or perform most of the repairs requested by the buyers. Some of the repairs requested were to fill in holes and replace doors that had holes, due to damages over the last few years of occupying the home. The rest of the repairs were items the buyer wanted to help update the home, i.e. new carpet and painting.
In this situation, my seller countered the buyer's offer on most of the repairs requested and rejected performing many of the items. We were fortunate to have a second offer presented at almost the same time and ended up rejecting the buyer's offer who requested the repairs and moved on with the second offer presented. Yes, it's true that there are situations where a seller is trying to get away with strategic default.
However, the percentage of those sellers coming on the market is much smaller than one would expect. I choose only to work with sellers that are in stressful financial situations and want to sell their home as a short sale because it will help their credit in the long run. Their reason for selling is based almost solely on the fact that they can not afford to pay their mortgage, therefore the sellers do not have the funds to update their property or increase curb appeal with fresh carpet and paint. A buyer's agent should be coaching their buyers on making offers on short sale properties and what to ask for repairs. Common sense isn't always a part of the equation, when it comes to real estate. Especially in today's market, considering the realtors who are still working have either been around long enough to know better or have experienced at least one sale that was difficult to maneuver through.
As a buyer, when it comes to requesting repairs on a home, be conscientious about the type of seller and look around at the home to see if you can figure out the background story of the home. Using a little common sense about the situation will help you determine if it's worth taking the time to write out your requested repairs when you'll more than likely be rejected. Then you'll need to decide if this is the home you want to write an offer on in the first place.
Because my seller's financial situation is where it's at, along with most short sale sellers, my seller does not have the means to correct or perform most of the repairs requested by the buyers. Some of the repairs requested were to fill in holes and replace doors that had holes, due to damages over the last few years of occupying the home. The rest of the repairs were items the buyer wanted to help update the home, i.e. new carpet and painting.
In this situation, my seller countered the buyer's offer on most of the repairs requested and rejected performing many of the items. We were fortunate to have a second offer presented at almost the same time and ended up rejecting the buyer's offer who requested the repairs and moved on with the second offer presented. Yes, it's true that there are situations where a seller is trying to get away with strategic default.
However, the percentage of those sellers coming on the market is much smaller than one would expect. I choose only to work with sellers that are in stressful financial situations and want to sell their home as a short sale because it will help their credit in the long run. Their reason for selling is based almost solely on the fact that they can not afford to pay their mortgage, therefore the sellers do not have the funds to update their property or increase curb appeal with fresh carpet and paint. A buyer's agent should be coaching their buyers on making offers on short sale properties and what to ask for repairs. Common sense isn't always a part of the equation, when it comes to real estate. Especially in today's market, considering the realtors who are still working have either been around long enough to know better or have experienced at least one sale that was difficult to maneuver through.
As a buyer, when it comes to requesting repairs on a home, be conscientious about the type of seller and look around at the home to see if you can figure out the background story of the home. Using a little common sense about the situation will help you determine if it's worth taking the time to write out your requested repairs when you'll more than likely be rejected. Then you'll need to decide if this is the home you want to write an offer on in the first place.
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