Tips For Short Sale Buyers - Destin Short Sales

Destin and Santa Rosa Beach, Florida Short Sales

To search Destin and Santa Rosa Beach, Fl Short Sales, Please Click The Link Below:

DESTIN AND SANTA ROSA BEACH FL SHORT SALE SEARCH

Tips for the Short Sale Buyer - Destin Short Sales, Santa Rosa Beach Short Sales

I have short sale listings and I work with short sale buyers. My strategies for buyers and sellers are completely different. This article is written to benefit the short sale buyer.

I never suggest that a buyer place multiple properties under contract with the intention of buying one property. I feel this is a horrible approach and a complete waste of everyone's time. However, it is possible that a better option may come along while waiting out a short sale. I am looking out for my buyer's best interest and in some cases it may be in their best interest to purchase another property.

Any time there is a legal contract and/or a deposit in escrow, there is a risk to the buyer, and I tell my buyers this. Typically, when there is a legal battle, the attorneys are the ones that benefit. Buyers need to know that the escrow agent will require a signed release from both parties to release the funds from escrow.

I often use some or all of the tips below to help protect my buyers. Some agents and sellers may strike these items, but I have had many contracts accepted with these terms. In many cases, the seller is willing to work a contract with contingencies. In a short sale, the seller cannot guarantee my buyer the home at the price and terms, so why should the buyer be 100% obligated to purchase the home?

Tips to Benefit Your Short Sale Buyer

• Avoid large deposits - Of course, many agents will advise their sellers not to accept your offer without a deposit. On my short sale listings, I advise my clients to require a deposit. I have seen bank owned (REO) properties that require a 10% deposit on a cash deal. I would never advise my clients to do this on a short sale. I try to stick with a $500 to $1,000 deposit, depending on the value of the property.
• Use the Far Bar As Is Contract: The standard inspection period language in the Florida FAR/BAR AS IS contract works well and I always start the inspection period upon lender acceptance. This inspection period is actually written like a due diligence period. I use this contract on all short sales.
• Buyer Friendly Cancellation Language: Have your attorney provide you with language that allows the buyer to cancel the agreement at anytime prior to lender acceptance, and allows for immediate release of the EMD. Some listing agents will not allow this but it offers flexibility to the buyer. Even with this language, most escrow agents will want a signed release.
• Closing Costs: I have had success requiring the seller to pay doc stamps on the deed and title insurance. Based on my experience, the banks do not have a problem paying these closing costs because they are looking at the net proceeds. I have never had a problem with doc stamps on the deed and title insurance. I typically do not ask for the short sale lender to pay mortgage related expenses because many banks will not pay these. Mortgage fees can change and this can create problems down the road.
• Only submit one offer to the bank: "Seller agrees to make property "contingent" on MLS and any new offers will be placed in a back up position. Only one offer will be submitted to the lender at a time" I believe that submitting multiple offers to lenders on short sales slows the process and is not good for the buyer. I advise my buyers to avoid short sales that involve submitting multiple offers to the bank.

I look forward to hearing some feedback and any other strategies that help short sale buyers. Every short sale that I have been involved in has been different. There really is no set strategy, just use common sense and protect your buyer.

Search Destin and Santa Rosa Beach Short Sales Below!

DESTIN AND SANTA ROSA BEACH FL SHORT SALE SEARCH