5 Blunders You Must Avoid When Dealing With Short Sales
Well, it’s finally gotten buyers’ attention. You remember them – the ones forced out of the market the past couple of years are now back in play. They are becoming aware of the increasing number of bargains emerging in the market and many are focusing on pre-foreclosures and short sales.
The opportunities in this market segment are excellent for smart and patient buyers but It’s also a part of the market that’s full of landmines and pitfalls. It’s not a place for the faint of heart – buyers or agents. On the other hand, for the well-prepared professional the potential can be awesome.
RealtyU, the developer of one of the leading Short Sale courses on the market today (Certified Short-Sale Professional), has taken a long look at what it takes to be successful in the pre-foreclosure arena. As a result they have just released a paper that addresses the 5 Blunders You Must Avoid When Dealing With Short Sales.
One of the key blunders pointed out in the paper is “not knowing when to walk away from a short sale.” If there is one secret to success in the real estate business it’s knowing which deals will close and which ones won’t. Listen to what the paper has to say about this subject:
"There are two types of listing agents out there participating in the short sale market. The one that will get a listing agreement signed with anyone that has a pulse and the agent that will not even touch a short sale. It’s this sort of mentality that is hurting our industry.
In the first place not every short sale is going to be approved by the bank. Many are just not a viable short sale. In not being more selective in this area many agents are clogging the national pipeline, resulting in countless hours being lost by buyers’ agents that are running around showing property that will never close.
There is a process that will allow you to look at a short sale opportunity and know within 10 minutes or less if a short sale even has the likelihood of closing.
How is that possible? While each and every short sale situation is different and unique unto itself, there are certain defined guideless that most lenders set in order to streamline the mitigating process. These secret guidelines are the foundation of our short sale viability guidelines. The short sale either meets these formulas or it doesn’t. If it meets the guidelines, it will have a good chance of closing. If it doesn’t meet the formula, then walk away. The formula offer in the Certified Short-Sale Professional (CSP) course can be the difference between wasting six months on a short sale that will never close versus having an 80% closing rate."
With any program there are significant steps that must occur in order to achieve a high level of success. This free short sale paper is well worth reading and you can download it by visiting http://www.cspdesignation.com/freeguide.html. It contains some great food for thought for anyone – whether you specialize in the short sale market or not.