Written by Norman Sinai Realtor, Mortgage broker.
As a radio show host for AM 1220 KDOW’s “Real Estate Rumble”, as well as being a Certified Short Sale Professional, Im often asked about short sales. Below is a copy of the update we gave out on the radio show that every prospective buyer needs to know about short sales- feel free to contact me if you have any questions. Norman Sinai
Short Sales: 72% of all the homes for sale in the East Bay Area are short sales. There are 6563 homes for sale in the bay area as of this post * By the way, we have about 8200 pending homes if that tells you anything about the supply & demand factor of the market place right now.
If your shopping for a home right now, your going to be running into short sales as many of your options. Here are some things you have to know but may not learn until your in the middle of an escrow !
1. It can take several months to complete- so be prepared.
2. Ask how many lenders there are & who they are. Some lenders play nice, others are a pain.
3. You will most likely sign a short sale addendum that outlines how long your willing to wait for the short sale to be completed.
4. Ask about the listing & buyers agents experience with short sales. It seems that 1/2 the agents know what their doing & the other half are still figuring it out .Were all being forced to get better & learn, and this is still an ever changing topic.
5. Confirm the pricing. Make sure its realistic and not some overly optimistic price the agent used to get offers that will surely be countered by the lender. Nothing worse than waiting 3 months to find out the listing agent was a bonehead.
6. Is there a professional negotiator involved on the agents behalf handling the correspondance with the bank? This can be a benefit !
7. **Ask if they are accepting only one offer to present to the bank. Some agents still send all offers to the bank & expect all the buyers to wait for the bank to pick one- (good luck on that method)
8. Follow up. Yes, you the buyer ! stay on top of the realtor. Expect it to be slow the first month, but you should be getting weekly updates after week 6 or 7 at minimum.
9. Technically, the escrow period doesnt start until the short sale is approved by the sellers bank-after this approval, you will then start your escrow period, do inspections, etc.
Listen to The Real Estate Rumble, Every Saturday & Sunday at 1 pm, on AM 1220, KDOW.