The Tietz Team, Short Sales Looking more attractive

A year or so ago, short sales were the ‘S' words that nobody, buyer's agents, seller's agents and buyers themselves wanted to be involved in. Banks were not very cooperative, they put listing agents through the ringer and were not very negotiable on price. If a buyer hung in there long enough and a whole lot of other variables worked out, we had an occasional success story. It came with the cost of frazzled nerves, frustrated and emotionally spent ‘victims' to the short sale process itself. The success level was low at best.

Well, circumstances have changed and banks have seen the light. Banks actually make out better, financially, if they can negotiate a short sale rather going through the costly expense of a foreclosure. Some banks are even negotiating short sales even if the mortgagee (owner) is not behind on payments (hey, that makes sense, keep the money flowing in). So here we are with more ‘express' short sales with many banks giving an approval in 3-6 weeks after an offer and short sale hardship package is submitted, rather than 3-6 months. An added note: Homes with 1 loan/1 bank or 2 loans/1 bank are much easier to negotiate with than 2 loans/2 banks, however all can be negotiated successfully.

But isn't a REO (already foreclosed property being sold by the bank) still a better and more affordable option? Well, sometimes it is, however short sales are being approved now with very competitive purchase prices and in many cases the homes are in much better condition than an REO. One other major factor guiding buyer's to short sale listings, most REO's in better condition are aggressively priced by the bank to sell within 30 days or less which creates multiple bid situations. Yes, there are that many buyers out there right now!

A successful short sale still has many facets. A dedicated professional realtor has to contact the banks involved, as representative for the property owners (via a 3^rd party authorization form and listing agreement with the seller's), and get their specific criteria of required components to the short sale package (every bank is different, but similar), and understand that specific bank's short sale procedure. That realtor must keep all parties accountable and make sure all required documents are received and sent to the bank in a timely manner.

We are experienced Realtors having completed many successful Short Sale and REO Transactions. Give us a CALL with any questions you may have or VISIT our web site.

The bottom line is short sales are becoming more attractive than in the previous year or so, so keep an open mind and don't be afraid to consider a short sale listing when making your new home purchase.

I'll close with a short story about our latest success story. We listed a home recently with 2 loans/2 banks. The second bank was a small credit union and was very willing to cooperate. We started the listing price a little higher to show the bank that we made an effort to get them the most money we could (we showed history). After about 4 weeks, we were at the price we knew would get attention. We received an offer within a few days, forwarded it to the bank with complete hardship package. Within 2 days I was assigned a negotiator, an appraisal was ordered, there was a small counter offer by the bank and we closed escrow about 4 weeks later.

BUYERS: HAPPY SHOPPING SELLERS: CONTACT A REALTOR-CHECK OUT YOUR OPTIONS

For more information please contact Rick and Joyce Tietz (925)628-5105

or visit our web site at http://www.tietzhomes.com

Written by Rick and Joyce Tietz, Realtors RE/MAX Associates