I continue to have more luck getting buyers into Short Sales than REO properties and have now come up with a strategy to increase our buyer’s chances of getting a home in this inventory drought.
One of the key factors of our success rate is due to the packaging of our offers. Buyers who have been at this for months will tell you that frustration begins to set in ultimately creating a routine of hit and run. Make an offer and run to the next listing if your offer was not accepted.
Follow up is everything
Short Sales in past months were challenging to say the least because of the lack of communication with banks and investors who own the loans. The secret is in the follow up. Our chances of getting our clients into a home increase dramatically if we simply follow up with the listing agent every couple of weeks though the Short Sale process.
You wouldn’t believe how many times Short Sale negotiations fall apart between buyer and seller just when a transaction is at the point of approval from the bank to proceed with a sale. This is where we have to be ready to jump in with our buyers. Having a backup offer can be just as successful as being in first position.
REO Nightmares
REO (Bank Owned) is an attractive option to a buyer especially in the affordable areas but it’s an arena filled with cash buyers and aggressive overbids. I caution buyers who tread into this environment.
There are good deals out there but there is also a huge unknown when buying REO properties. Banks have no knowledge of the property and as such are exempt from providing Transfer Disclosure Statement (TDS). TDS information can make or break a purchase; it discloses anything affecting the desirability of the property including its surroundings. Do you want to buy a property blindly? In REO most people are doing just that.
Short Sale vs. REO
I will always ask our buyers to consider Short Sales over REO simple because there is a higher probability of success when making offers in a highly competitive market.
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