By Kelly Reark
I have been representing a buyer since June of this year when he made the decision to put in an offer on a short sale. We aren’t closed yet, and it has been a bumpy road. Our journey actually began in January of 2007, but who’s counting?
There are many ways that this deal could die along the way. Here are my top five buyer bail scenarios that could stop you in your tracks.
1. Before actually writing the offer, counsel your buyer on what a short sale will likely involve. Make sure they are prepared for the waiting game. It is up to you to keep them interested and excited about their purchase.
2. Buyer’s remorse. Are the buyers seeing other properties sell for the same amount or less than the one they have the offer in on? A longer waiting period between the offer and the acceptance can issue a set of military spec cold feet. Keep a working CMA for your buyer that you can update during the waiting period. Point out the benefits to the home they have chosen.
3. Work with the lender to get your buyer’s finances in order ahead of time. If they are serious about making a purchase, they should begin the paper trail for their loan package long before hearing back from the seller’s representative. State your contract in such a way that there will be ample time to complete a mortgage after the seller’s approval comes back. (And lock in that great rate!) In the case that their offer is denied, they will be ready for the next one.
4. When you have a non-local buyer, help prepare them for the series of events that will unfold during their inspection period. If the buyer must make travel plans to be present, impress upon them the strict time period he will be working within. Alert the buyer’s chosen service providers that you will be calling to schedule inspections with them, and if possible give them a penciled-in date.
5. Stop the recurring appraisal nightmares. If you have ever worked with a property that didn’t appraise out at the last minute, after all the other work has been done, you know what I am talking about. Here’s where you can help the buyer weigh their options. It may be most beneficial and cost-effective to hire an appraiser in the beginning if there are doubts about a property’s value.