When you are working your short sale it is very important to get your buyer inline and use a strategy that has worked very well for me.
Before we look at what the buyer should do, lets first analyze the lender and what they need to approve your file.
The “lender” is actually broken down into 2 or 3 areas depending on whether or not they own the loan or are just the servicer.
SERVICING LENDER (3 Different Players): If they are the servicing you must first realize that they have to follow the investor guidelines as outlined by the investor who actually owns the loan.
The first player in this game is the negotiator. Their job is to recover as much money out of the short sale as possible.
What does this tell you?
It tells you that they want to be able to get the buyer to increase their offer, even if their offer is right at the BPO value!
To be a really good short sale agent you must first know what market value of the home is, or you are shooting in the dark. If the home is worth say $100,000 today, and the buyer’s offer is $98,000, then you should ask the buyer (killer strategy) to submit a slightly lower offer, maybe $93,000, and be ready to counter back at their full offer of $98,000.
You might be thinking “Why do I have to do this? This offer is very close to market value!”.
The reasoning behind this is that when the negotiator turns in the file for approval from upper management (player #2), they will ask the negotiator “Did you do everything possible to get every penny out of this file?”.
When the negotaitor can respond with “Yes the first offer was $93,000, I asked for $5,000 more and they accepted, we are very close to market value and we should accept the short sale”, you are making their job easier, making them look good and getting your file approved quickly!
Now your short sale file is sent to the actual investor (player #3) for final approval, they read the notes from the negotiation, check the offer vs. market value and sign off on the short sale!
I know you might be scratching you head and wondering why we have to play this game. Don’t over think it, just try it out and see how it works for you!
Please leave a comment or ask a question below.
Related posts:
- Why did the BPO home valuation come in so high on my short sale?
- My Book: The Real Estate Agent’s Guide To Using The Equator Short Sale Website – Now at Amazon
- *VIDEO* Why Short Sales Fail – Part 1 – Dealing with the Seller – For Real Estate Agents
- Does my bank really want my house? Part #2 – Short Sales
- Homeowners – Please Help Your Short Sale Real Estate Agent Help You!
Tags: final approval, investor guidelines, negotiation, negotiator, real estate agent, short sale, short sales, stop foreclosure
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