Destin and Santa Rosa Beach, Florida Short Sales
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Tips for the Short Sale Buyer
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
1. "Deposit to be placed in escrow within 5 days of lender acceptance" - If your buyer can place a short sale under contract without even placing a deposit in escrow, they are in a fantastic position. The argument is that the bank may require the deposit in their package; this really depends on the bank . I have done this successfully and the short sale closed. Advise your buyer that the bank may require it prior to lender acceptance.
2. 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.
3. The standard inspection period language in the Florida FAR/BAR AS IS contract works well but you must start your inspection period upon lender acceptance. This inspection period is actually written like a due diligence period. I use this contract on all short sales.
4. "Buyer can cancel this agreement at anytime prior to lender acceptance, and the deposit will be immediately released from escrow" - This one is great and I have had contracts accepted with it many times. Some listing agents will not allow this language but it offers incredible flexibility to the buyer. Even with this language, most escrow agents will want a signed release.
5. "Seller pays doc stamps on the deed and seller pays title insurance". The banks do not have a problem paying the majority of the closing costs because they are looking at the net proceeds. So have the seller pay these expenses.
6. "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.
Clayton Bonjean, Broker, MBA, CDPE
850-585-1284
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DESTIN, FL AND SANTA ROSA BEACH, FL FORECLOSURE SEARCH
Help for the Buyer - Multiple Offers Without The Stomach Ache
I stay very busy working with buyers writing offers on short sales and bank owned properties in Destin, FL. I like to seek out the best deals for my clients and this often leads to multiple offer situations. This can be a very uncomfortable and stressfull situation for all agents and buyers involved. The tips below will help any buyer in this situation.
1. Do not make your offer based on the other offer. For all you know the other offer could be ridiculously low and have contingencies all over it or it could be above asking price. You will have no way of knowing the other offer unless the seller advises the listing agent to tell you. Speculation will get you nowhere.
2. Look at the comps and have your realtor provide you with a CMA "comparative market analysis". Make your decision based on the comps and base your offer on this analysis.
3. When you are told to submit your "Highest and Best Offer", submit your highest and best offer but understand that the bank or seller may ask for "Highest and Best" again. I have had this happen a few times.
4. Make your offer as clean as possible. Do not include too many contingencies because you may lose out to a lower offer.
5. I have seen many foreclosures and short sales sell for over the asking price. This happens all of the time. Sometimes banks and agents price homes under market to create a bidding war and many investors are aware of this.
6. The other agent is not lying about the other offer. This would be a major violation and we cannot assume this.
Keep a cool head and make a good offer when there are multiple offers on the table. Do not offer way too much and be careful with the low ball offers.
Clayton Bonjean, Broker, MBA, CDPE
TIPS FOR THE NEW AGENT FROM A DESTIN - SANTA ROSA BEACH, FL REAL ESTATE BROKER
I am a real estate broker in Destin Florida. I have had many different careers and I have been fortunate enough to complete many types of professional training. Some examples include:
There are so many sales strategies out there and every person should work to develop their own original strategy. However, there are some basic principals that will help any new agent achieve success. Below are some basic ideas that will help kick start your new career.
1. Get a web site: Most Real Estate transactions begin on the internet. If you plan on acquiring listings you will need to feature them on your site. You should also offer search options for your buyers as well as local information and info on why they should hire you as their agent.
2. Order professional business cards: Your cards should look great. Try to make it a game and see how many you can give out every day.
3. Market to your circle of influence first: Compile a list of email addresses or mailing addresses of all friends, family and friends of friends and family; send them notice that you are selling real estate.
4. Develop a Farm: "The term farm implies growing something. That's what you do when you farm a local subdivision. You plant the seeds of future business, nurture them with marketing and then hopefully reap the rewards in commissions." A farm should be small, 250 to 500 people. They key is to market to them regularly. Eventually they will recognize you as the professional in their area. Examples of farms can be a certain subdivision or a market segment like golf course homes. The key is that it is a small group and the contact is regular, at least once a quarter. A small group enables you to stay in contact regularly on a small budget.
5. Learn about short sales and foreclosures: This is the market right now, become an expert in these types of transactions. You can sign up for courses, buy books, and research these types of transactions on Active Rain and Trulia.
6. Study books and blogs on how to sell Real Estate: Congratulations!, you are already doing this one!!!
NOW THAT YOU HAVE SOME CLIENTS, BELOW ARE SOME TIPS ON HOW TO SELL THEM A HOUSE!
ASK LOTS OF QUESTIONS. Below are some examples.
WHAT IS YOUR BUDGET? Most Important!
How many bedrooms, what is your minimum square footage?
Do you have children? If so, provide them with info on the schools in the area.
What location do you prefer?
Will you be using financing or paying cash? If financing, tell them that a pre-approval or pre-qualify letter is required to be successful in this market. Most sellers will require this.
I also like to tell them that the more information they can provide me the better. My goal is to find them the best deal on the best house in their criteria.
Do a dry run! If you are new and not completely familiar with the area, it is good practice to do a dry run prior to showing. You should be enjoying speaking with your client and getting to know them not looking for street signs, getting lost, and trying to figure out the gate code.
Pick your client up: Always try to pick your client up. Look at it this way, one agent meets the client at a home and the other agent picks the client up and spends time in the car making small talk and chatting about the area…Which agent do you think will win?
Listen, Listen and Listen: Remember to listen to your client. If you do this you will be able to find them the right house.
Close: When you find the perfect house for your client, they will tell you…Examples “This house is perfect”, “This is #1 on the list”, “We love it”. This is when you have to close. Houses are very easy to sell. Closing should come natural. When the client says “We love it” say something like, “Would you like to make an offer?” “Would you like me to call the agent to see if there have been any other offers?” This is a gateway to closing. Good Luck!!!
I hope these simple tips help new agents out there. Most importantly, make sure you have a broker that can offer you support, leads, and strategies to grow your business. I am always looking for quality agents, feel free to visit my site at www.mainsailrealtycompany.com or call me at 850-585-1284.
Clayton Bonjean, Broker, MBA, CDPE
Destin and Santa Rosa Beach, FL
Clayton Bonjean JUST SOLD this Santa Rosa Beach, Florida Short Sale.
To Search Santa Rosa Beach and Destin Short Sales and Foreclosures click the link below.
Santa Rosa Beach and Destin Short Sale and Foreclosure Search
Location: Topsail Village, Santa Rosa Beach
Price: $101,500 Furnished
Contract Date: 06/17/2009
Close Date: 09/10/2009
Lender: Amsouth Bank
I love short sales! When purchasing short sales, make sure you hire an agent that understands the short sale process. This will definitely increase your chances of a successfull short sale transaction. If the seller has a true hardship, the bank will probably be open to a short sale. The reason why most short sales do not close is because the buyer walks. This transaction closed in less than 90 days and this is considered a "quick" short sale closing. The buyer is very happy with her new condo.
850-585-1284
Clayton Bonjean, Broker, MBA, CDPE, Short Sale Super Stars
Search Destin Florida Foreclosures at www.mainsailrealtycompany.com
I LOVE OVER PRICED SHORT SALES
Isn't it funny how one $10,000 price adjustment on a $200,000 short sale listing can create a frenzy and multiple offers? I have found that over priced short sales are a great opportunity for the buyer's agent that understands the short sale process. If a short sale is listed for $200,000 and the comps are $160,000, one can offer $160,000 and educate the listing agent and seller with the comps. I have had great success with this and wanted to share this with the rest of you. These short sales stay under the radar and can present fantastic buying opportunities. Let me know if anyone else has had success with this strategy. To sum it up, a high listing price will create less competition and the ability to secure a good deal. The future BPO is the basis of our offer, not the list price or amount owed. I understand that a high list price may show the listing agent's lack of short sale experience or many times it can be due to a stubborn seller. I have actually had situations where I sent the comps to the listing agent and they placed them in the short sale package. This works!!
Clayton Bonjean, Broker, MBA, Short Sale Super Star, CDPE
850-585-1284
clayton@mainsailrealtycompany.com
Residential real esate broker with a focus on REOs, short sales and aggressively priced properties.
I received a degree in marketing from the University of Mississippi and a Masters of Business Administration from the University of Alabama at Birmingham. In 1996, I moved to Destin Florida and obtained a real estate license with Mainsail Realty Company and became the Vice President of Lovelace Interiors, www.lovelaceinteriors.com. Through this experience, I have been given the opportunity to work with many investors, builders and developers and I have learned a great deal about the local market. I am very excited about the current and future opportunities in Destin Florida and for this reason, I recently received my Brokerage license and have become a full time Real Estate Broker for Mainsail Realty. Please visit my site at www.mainsailrealtycompany.com. I recently completed my CDPE designation "Certified Distressed Property Expert" and Short Sale Superstars training. I have a great understanding of short sales and bank owned properties and I can help buyers and sellers of distressed properties.
I offer the Following
If you have any questions about Destin, Florida please give me a call. I would love to hear from you.
Clayton Bonjean, Broker, MBA, CDPE, Short Sale Super Star
clayton@mainsailrealtycompany.com
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