It is becoming common practice on today’s
short sale and foreclosure markets that
agents and broker are taking on a
adversarial position with buyers who place
low offers on the table. The problem most
agents do not understand is the banks are
not on the side of the seller they are the
adversary.
The banks position is they want the most
money the Sellers position should be to get
out of the home without going to
Foreclosure. The more their agents take the
position of trying to protect the seller and get
more money than the home is really worth
based on the debt the more risk the place on
the seller.
In creating offers on Short Sales and Pre-foreclosure homes the agent on the
buyers side must do a detailed study of the market. To do this correctly they must
use Active Listings, Sold listings in the last 60 days and homes under contract
currently.
In many markets this is the hardest thing to do! Many listing agents are using out
dated information by going back six months on solds because the market in many
cases has already changed two or three times in the period.
When agents are doing BPO'S or "Broker price opinions" they do not even look at
the home and go over any defects the home may have that need to be address
when presenting offers to the bank.
If the package that goes to the bank for consideration, does not include a detailed
report and break down the bank cannot completely understand what the future holds
should the foreclose.
A complete package should include the following!
A complete detailed report on the current market based on the home and like homes Sold, Active, Under Contract and Expired. They also should determine any homes sold with agents.
Complete detail inspection report for any and all repairs needed on the home.A neighborhood study of of all foreclosure and short sales in the area with address and dates along with prices.
A completed cost break down showing all cost and fees including the cost of not taking the offer over the long term and what is will end of costing the bank should they foreclose and have to carry the home.
The offer from the buyer with all documentation supporting the buyers ability to close should the offer be accepted.
A updated title report disclosing any and all liens or judgments on the homes titled.
Seller financial statements to include but not limited
Current Bank Statements
Current Asset statement
Current tax returns
Letter of hardship
Banks current short sale package
Details of funds available to bank after agreement to settled
Any and all documents to support the sale price
The problem is that many agents just jumped into the short sale and
foreclosure segment of the real estate industry simply because they could not make
sales any other way but they did not receive the education or the understanding of
what is takes to make offers look more attractive to the banks. It is no longer like it
was before the Seller really should not care what the home sells for the only thing a
Seller today should be thinking about is WILL I ESCAPE FORECLOSURE!
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