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Making Sure Your Client is Prepared for a Short Sale

With things looking up in the real estate market, you don’t see as many short sales as you did a few years ago. There are still plenty of short sales out there however, and there are still buyers interested in them. If you have a buyer interested in a short sale, be sure they know what to expect.
It Can take Longer Than a Regular Sale
Make sure that your clients know that a short sale can take months to close. Unlike a traditional sale, completing the documents required by the lender takes time before the sale can even be approved.
Don’t Expect the Seller to Make Repairs
Since a seller doesn’t make a profit in a short sale, it’s uncommon for sellers to make any major repairs. Sometimes a seller may be able to make some minor repairs before closing. Make sure that your buyers get a home inspection before purchasing a short sale.
Short Sales May Fall Through
Sometimes a seller may have more than one mortgage on their home. In order for the seller to proceed with the sale, both mortgage lenders must agree on the sale. Sellers may also be forced to pay some closing costs or incur more debt in order to get the sale approved. If the seller doesn’t agree, the seller may back out.
Make Sure They Know You Have Limitations
Let your clients know that the banks are essentially the sellers and that they call the shots. Remind them that this can be a lengthy process and that you can’t push the banks to move quickly. Let the know that you will keep them up to date on any progress that is made. Good communication is the key to a successful short sale.