By Jennifer Klein
When in doubt, it’s best to disclose. Protect your sellers’ best interest with this advice:
Jennifer Klein is a REALTOR® in Northern California who is experienced in short sales, investments, and property management. Connect with Jen at RosevilleAndRocklin.com, JenKlein.com, and @JenKleinSac.
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. Continue reading »
By Jonathan Osman
Step 1: Find a buyer. In my market, the unemployment rate is 11.1 percent and the under-employment rate is around 16-20 percent. While a few years ago, one could conceivably purchase a house without a job; today, employment is essential.
Step 2: Find the buyer a loan. As long as the buyer has a job, modest credit scores, and reasonable debt load, this can be accomplished with relative ease. However, only 75 percent of buyers ever make it past Step 2.
Step 3: Find the house. SO VERY EASY especially with only 24,000 homes in the market to choose from; 5 percent being REO, and the buyer wants “a deal.” The buyer then proceeds to view all 24,000 homes, making offers at fifty cents on the dollar, with only a $10 earnest money check.
Step 4: Under contract: Oh yeah baby. I can count the dollars now. Just sit back and wait for the closing day. If that were only so true…
Once the home is under contract, now there stands a nearly insurmountable set of obstacles that will kill any transaction such as (All of the following actually happened at some point in the last 3 years):
- Did the inspection reveal needed repairs? Yes. Will the seller repair? No! Deal dead.
- Does the inspector freak the buyer out over unnecessary repairs? Yes! Deal dead.
- Does the house have mold? Yes every house has mold? Buyer freaked? Yes! Muerto.
- Did the house burn down before closing? Yes! Does the buyer still want it? No! Done. Continue reading »