Summary: SSP012: Short Sale Help for Agents: Selecting the Best Buyer Part 2 During this episode we will explain how to avoid some of the most common buyer "landmines" so you can increase your odds of going from Sold to Closed instead of Sold to Cancelled. (Read the Unedited Word-for-Word Audio Transcript Below) __________________________________________________________________________________ Follow this link to Subscribe to my Short Sale Podcast in iTunes -- CLICK HERE __________________________________________________________________________________ Let me know your thoughts by commenting below... Thanks for Listening and Happy Learning - Scot The Unedited Word-for-Word Audio Transcription: Episode 12 of the Short Sale Podcast; "Short Sale Help for Agents: Selecting the Best Buyer Part 2." This is the second of three parts. In the last episode, number 11, we left off explaining what to do once you start getting offers. The goal is to go from listing to sold to close and not from listing to sold to canceled short sale. To increase your odds of going from sold to closed, instead of sold to canceled, we need to avoid the landmines, these are the negative components. The landmines that are typically contained within the purchase agreement, or the purchase offer. We want to get rid of those, whether there current landmines or future landmines. Now, future landmines, we want to make sure that we get a buyer that's getting a good enough deal that they're willing to do what we tell them to do, they know what they're getting into, and there willing to spend money to make sure they know what they're getting into. One of the most challenging landmines involves something as simple as the inspection. Here's the scenario. The after repair value as we said before was $150,000 in our example, you put it in the MLS at a $108,000, because that represented a fair price in a whole sale valuation. Remember, we went through that in a previous episode. You got an offer at $100,000. So, it's a little bit less than the price you've got it listed, and, keep in mind that we expect to clean up the offer, because we're not going to expect to accept the initial offer as a trend. We're going to use a counter offer in order in order to clean up any of the landmines. The first landmine that is common is the buyer is asking the seller to let them wait until the lender has approved the short sale, before they do their property inspection. This is a landmine, sounds reasonable if you're not thinking about it and yet they're a problem here. You're going to clean up in the counter offer, but let me repeat what the buyers are saying. they're saying "look we want to buy the property at this price and we want you to let us the buyers wait, until got an okey-dokey from the lender on the short sale. Then if they give you the okey-dokey, then we'll proceed with our inspection." Now, here's what you're going to do. You do not want to allow the buyer to convince you that this in normal. Don't let the buyer's agent convince you that this is normal. In the counter offer, you may be fine with the price, because remember I said it has to be a good enough deal that they'll stick around. You want to make sure that in a counter offer, that you ask the buyer to remove the inspection contingency, or complete their inspections within 10-14 days, whatever is standard in your area, of this sellers acceptance. You do not want them to be allowed to wait until the end of the transaction to do their inspection. Understand this about as-is, if you're buying it as-is your buying it as-is. If you let the buyer until the lender approves the short sale, then you're going to find yourself renegotiating the price after they do their inspection. I've seen it before; you don't want to do that. More importantly, you could also be guilty of fraud. This is the part most agents don't think about; because effectively gone to the lender and you said "hey Mr. Lender,
