Archive for September 2011
Expert Real Estate Agents Guide Buyers Through the Short Sale Property Maze
September 18, 2011 | 
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Because of the economic climate, savvy home buyers are looking for great deals on short sale properties. If you are a buyer looking to cash in on this market, it is highly recommended that you work with a real estate agent with considerable experience working with banks on short sales purchases.
A “short sale” is property that is being sold for less than what the property owner owes the lender. While short sale properties will be found on MLS (Multiple Listing Services) because the sale is being handled by a real estate office, the lender is actually in control of this transaction. The bank will determine the sales price, and will either accept or reject offers received from prospective buyers.
Buyers who think they will pick up “steals” by purchasing either foreclosed or short sale properties could be in for a surprise. Banks are not in the business of taking huge losses if those losses can be avoided. If a property is in good condition, and in a good neighborhood, odds are it will be priced in line with other properties in the area.
You should be aware that there are lenders out there that will deliberately price a home below market value in order to attract a “bidding war” on a piece of property that is especially nice or in a very desirable location. This does not mean that there are NO great deals out there, but rather that you might require the assistance of an experienced real estate broker to help you determine which of those listings are the great buys.
From the buyer’s perspective, negotiating with a bank can be a very lengthy and frustrating process. Patience is a requirement when you are in this market. While it is always possible that your offer might be accepted right away, be prepared to wait weeks, and sometimes months to get your offer accepted and your purchase closed. Because lenders hold a power position in this process, it is not unusual for a bank to wait for multiple offers before accepting one.
Your real estate agent becomes your best ally during the negotiation process with the bank. A thorough understanding and familiarity with bank required paperwork in order to get your offer moving through the process is of course something you should expect. However, your agent offers even more value in being able to find out if your offer is competing against multiple offers, even while not knowing how your offer stacks up against the competition. Established relationships with bank personnel can never hurt in short sale offers.
There will be properties that are not in the best condition nor the best location. Lenders may be willing to loosen their lending guidelines in order to attract offers for these houses. However, for most properties, most lenders will follow conventional lending guidelines to finance a purchase, even a purchase of a short sale property.
Most lenders will require that a buyer submit a loan application to the lender directly to ensure that the prospective buyer qualifies for the purchase. However, lenders cannot require you to finance the house through their bank, so be wary of paying upfront fees, if your intention is to shop for financing options.
Real estate professionals are aware that legal questions can and will arise during a short sale property transaction. Most agents will advise you to direct legal questions to attorneys and tax questions to certified public accountants.
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Who Pays the Fees in a Short Sale?
One of the biggest questions/concerns a short seller has, is “Who will pay your commission in a short sale?”
The answer is very simple. In a successful short sale negotiation the lender will pay the real estate commission and any other fees involved. The fees that are usually included in are as follows:
1. Real Estate Commission- 5-7% of the cost of the home
2. Attorney Fees ( I always have an attorney help negotiate the transaction) $1500 or more
3. Any back taxes, condo fees, water/ sewer bills, etc….- Many times there are unpaid taxes and such…
4. Secondary notes or home equity lines of credit- this may not be paid in full but again negotiated
5. Typical closing costs, including tax stamps, deed preparation and other closing costs
These fees will all be paid by the bank in a successful transaction. A $200,000 sale price could have anywhere between $12,000 to $15,000 in fees on top off any secondary notes and what it will cost to eliminate the secondary note. Most likely, you as the seller, has no money to bring to the closing table.The great part is these fees are paid by your lender, you will have no out of pocket expenses, if the short sale has been negotiated properly.
If you are late on your payment and the bank has been calling you and you have seem to have exhasuted all possibilities, contact a pre-foreclosure specialist. There are usually no fees to the seller and the benefits of a short sale make it a much better option than letting the bank foreclose on your home.
Short Quotes for Motivation and Success in Sales
Life becomes dull when there are no changes, no challenges and no targets. There are many jobs in the world e.g. engineering, doctor, software and many more, but the most challenging job is the job of sales. Doing a job in sales is the toughest experience of life. You have to do much hard work as well as smart work. Sales people convince their clients to buy their product. They undergo lots of pressures. At that time, motivation is something which plays important role in their daily activities. Short quotes can be very helpful to motivate them. These short inspiring quotes help them to face the difficulties and they feel inspired.
I am going to share some good short sales quotes for sales people. These short quotes will help them to understand the cycle of sales.
“Everyone lives by selling something.” ~Robert Louis Stevenson
Everyone, in the world, is in the need for something. Everyone sells something like doctors sell their services, property agents sell their experience, banks sell their money. So every product is made to get use by their prospected customers and when someone buys it, someone also sells it. If you are in sales, you just have to identify the need of your prospected customer. You need to realize them the need of your product. So never get frustrate and be positive.
“Don’t sell life insurance. Sell what life insurance can do.” ~Ben Feldman
This short quote describes about what your approach should be, while selling your product. You need to aware the customer about the benefits of the product. Realize yourself what your product can do for your clients. You will meet your targets and your sale will go high.
“Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust.” ~Zig Ziglar
Yes, there are many reason for not buying but you need to overcome them. You need to cross above mentioned five obstacles. Believe on yourself, give better service to your clients. You have to take your customer in the world of dreams.
Motivation is the way to find the reasons for doing something extraordinary. When you read variety of short quotes, you feel refresh and cheerful. So begin it again and plan your activities with enthusiasm.