I'm submitting Counter 3 today. Unfortunately, I think my Buyer is going to actually have to pay MORE than he would have if he had initally accepted their first counter..which was extremely fair.
House listed at $144,900..$87/sf. A very good price as it's been remodeled, new bathrooms, kitchen, A/C, roof, 1989 home with over 1600 sf and in a great location. Listed 30 days. I suggest $140,000 as we are cash and I think they may accept. Nope.
Buyer decides he wants to barter. We offer $130,000.."because we're cash and they'll want cash." OK..I feel defeated, but I know the list agent and he says, "go ahead and submit it..we now have multiples.." I do.
Counter comes back at $140,000..great I think! Now we're closer to $85/sf..what a buy!
Buyer says, "I think we can get them down..afterall, we're cash." He offers $135,000.
I'm almost embarrassed, but despite reviewing the comps and showing him what a fantastic buy this is based on the entire 12 months of past closings in this area..he insists.
List Agent now comes back, "We now have multiple CASH offers. We are countering all cash offers with Highest & best."
Wouldn't it be awful, but somewhat justfied if it now goes for MORE than $140,000 cash..the original counter to our offer?
Sometimes, when your Agent says, "That's probably TOO low..", the Buyers should listen. I may not be able to find this sweet a deal again..Sometimes a deal has to crash and burn for a Buyer to be ready to step up to the next one...
This is a question I think every Buyer's Agent should ask their prospective Short Sale Buyer. There are so many invisible obstacles in the path of a successful short sale closing, that educating your Buyer is absolutely critical!
My area of Riverside County, the Palm Springs Valley, is seeing a huge decline in entry level inventory. If you are looking at that price point, it is approaching the realm of "should I take the Short Sale or should I pay $5-$10/sf more and KNOW what I'm getting and when?"
Even with an experienced List Agent, things can go very wrong. So much is dependent upon which Lender or Lenders are involved. The degree of default. The willingness of the Seller to submit and re-submit docs and most of all...the Negotiator!
THE SHORT SALE TRAIL CAN BE LONG AND ARDUOUS...
Who IS that negotiator? Well..sometimes it's a really experienced real estate minded person that works with me as the List Agent beautifully. However..in my 5 years of listing, negotiating and CLOSING Short Sales, I have found that special negotiator to be the exception rather than the rule.
It IS better now than even 3 years ago. However..I am right now embroiled in a B of A short sale that should have flown through. Four buyers later, four negotiators later and my "new" negotiator is just as uneducated about my file as the first one was. So..I keep re-submitting docs that the other 3 negotiators already have in the file and away we go. That first buyer, second buyer and probably 3rd buyer are already ensconoced in their new homes and laughing about that Short Sale still being on the market.
Are you tough enough? Can you wait long enough? Do you WANT to deal with it? Answer these quesitons truthfully because it COULD be 90 days and it COULD be 250 days..
Short Sales do have a less critical hit on your credit and future ability to secure a loan. They definately DO affect your credit scores, but not as hard or as long as a Foreclosure does.
The real problem is GUIDELINES. Each purchaser of loans, FNMAE, FREDDIE..FHA..they all have their own sets of guidelines. It's hard to get past them and each is different..
If a borrower makes their house payments, the wait time is shorter. If a borrower has extenuating circumstances, the wait time is shorter.
Overall, if a person that has had a SHort Sale OR a Foreclosure continues to pay their other credit cards and payments on time, that helps immensely. ALso a larger down payment..always a good way to sway a Lender.
I had an Agent call me last week..
"I have a listing I'd like you to take over..call me."
I did. Turns out it was her own personal residence and it was also a Short Sale. Unfortunately, she self-listed and worked it for 8 months. Got several sale date postponments and now..sale date is set for 2/6. Uh-oh!
Several things jump out here..
1. With all the Short Sales being done, all the classes being given, all the written updates that come across my e-mail and websites with regards to Short Sale Rules..why would a Realtor NOT know she couldn't self-list?
2. Same as above..but with regards to the Sale Date. I was called Wednesday, Sale date is today, Monday.
I got it listed, got price cheap, got an offer on Saturday, tried my best to initiate a Short Sale and contact everyone alive at Bank of America. I didn't think I could save it..but she's a fellow Agent so I took a whack at the Pinata.
Title says it's not gone through the sale yet and I'll call again in the morning to see if I can pursuade them to let me try a Short Sale one more time..not likely.
I so wish she'd called me long ago! She was a slam dunk for a HAFA short sale and would've received Relcation assistance as well as "settled for less than owed" instead of a Foreclosure.
If you want to list your home as a Short Sale in the Palm Springs area, give me a call NOW! Before the timing becomes too difficult. Explore your options early..just as you would with any other business decision.
Losing your home is scary, but not being in control of the situation is even scarier..
I wonder if people considering a Short Sale in California know about the Debt Forgiveness expiration date? This is something that must be considered if you are one of these potential Sellers....Critical that homeowners considering listing their home as a Short Sale do it in 2012..and in time to CLOSE by 12/31/2012. Why??? The Debt Forgiveness Act expires then! In California, although you will receive a 1099 for the debt that was forgiven, the debt is wiped out on primary and secondary residences..both first and second PMl’s. This helps you so much if you are not insolvent. Consult your CPA, then get that property listed and CLOSED in 2012.
Will the law be extended? I sure hope so. If not, Palm Springs and the La Quinta area will see more Foreclosures. We are really stabilizing in La Quinta. Prices are actually going up! Investors are finding that First time Buyers are able to beat them out in their bids!
If you are underwater on your mortgage and considering a Short Sale, get it listed NOW! Your final closing HUD must be dated no later than 12/31/2012 to qualify for your debt forgiveness. Consult your CPA, then get your property listed and CLOSED in 2012! Don’t wait and take a chance!
Will it be extended?? Most likely..but stranger things have happened, so why not move forward before it becomes an issue???
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Selling the Palm Springs Valley..Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Thermal. CLOSING short sales since 2007-SFR, HAFA certified. 760-285-3578
Long before I became a real estate agent, I went to the University of CA at Davis where I was introduced to the sport of Polo. I became one of the few women professionals in the world.
I began my career in Polo as a groom in Santa Barbara, New Zealand, and Argentina. I learned the business from the ground up. Started two clubs in Los Angeles, (Griffith Park and Winston Polo), then moved to the desert and played professionally for about 18 years!
Polo is a team sport, especially if you are the only woman on the team and many times, the entire field. Negotiate, exchange ideas, develop back up plans, be quick to respond, and do not dwell on the goal you missed! I still play for fun, and own 3 or 4 horses most of the time..young ones that I train to play.
Ten years ago, I got my real estate license in 
Kauai, HI, and then Calif. My home base has always been in the Desert, (25 years!), so I specialize in the Coachella Valley. Rancho Mirage, Indian Wells, La Quinta, Palm Desert and the more rural, equestrian oriented East Valley.
I use the same rules in my real estate dealings, that I learned on the field. Educate myself, listen, exchange ideas, be open to quick changes and stay up with the play! In this challenging market, I believe it is crucial as your real estate agent, to adapt quickly, stay ahead of the game, and be a team player.
I work with both Buyers and Sellers looking to take advantage of our incredible deals in the Coachella Valley. In 2011, that often entails Short Sales, which I have been doing since the crash took hold about 5 years ago. With the constant changes in the Short Sale industry, it is a challenge to stay educated about Short Sales.
I do not believe in the "hard-sell." I think that it is my job first and foremost to educate my clients. They need to have a good understanding of the market in the Coachella Valley. Any of our beautiful desert cities, whether 
La Quinta, Palm Springs, Rancho Mirage, Indian Wells, Palm Desert, or the east Valley, should be explored, as well as their surrounding areas. With so many abandoned projects and city councils cutting back on spending..these details are critical to Buyers and Sellers. I do my homework. If I do not have an answer, I will admit it, and then do the research required to provide my Clients with the information they need.
I firmly believe that a Buyer will know when they "feel" the home. It's like this..when I go to look at a 
young prospect (horses I'm talking about), I like to get a first "hit". Then I walk away..perhaps overnight and then return for my second "hit." It is a gut thing. If I trust myself, I am rarely wrong about that horse's potential. I believe purchasing a home is exactly the same way. A Buyer must "feel" the home..particularly first-timers. Buyers are mostly buying homes they plan to live in..not to flip, although with prices so low, the Investors are being lured back to the Coachella Valley in droves!
My Clients become my friends, and we share a mutual trust, and respect. My past clients' referrals turn into my current and future clients..and friends. Client Testimonials.
"Kim never forgot to return a call, or follow up with the information we asked for..no matter how small. She made it easy for us, and we were pretty nervous." Tom & Darci Turner, La Quinta, CA.
"Kim and I have done quite a few deals over the years. She is on top of it, and gets back to me. I'd recommend her to anyone." Karen Miller, Foresite Escrow, Palm Desert, CA.
"Kim sold us our first house the same way she sold us our first horse! Fairly. She's our realtor and our friend." Richard and Joann Foxx, La Quinta, CA. To see more Testimonials, visit my website..k2sells.com.
"Kim helped us navigate our Short Sale even though it was completely foreign to us. She constantly kept us updated, in the loop, current on negotiation request..she made it easy and comfortable for us." Palm Springs Short Sale Seller, 2011
"If you are tired of dealing with Loan Mods, your Lender, or anything about your underwater mortgage, Kim is your gal. On top of it, honest with the process, follows up relentlessly..I would recommend her to anyone." Rancho Mirage Short Sale Seller, 2011
"I'm a broker of 30 years. I had to list my Rancho Mirage home as a Short Sale. After interviewing several Realtors and doing extensive online checking, I met Kim. She got our HAFA short sale with Wells Fargo moving forward, worked and CLOSED quickly and efficiently. Even the Buyer's Agent was impressed. Use her..you won't regret it!" Rancho Mirage Short Sale Seller, 2011
(I don't release names of my short sale Sellers because it is a private, discreet transaction to the best of my ability.) For more Testmonials,
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