As some of you have experienced, there is nothing more frustrating then getting a Short Sale approved and then the buyer walks after inspection because of a nit picky reason. The steam rises from your ears after you wasted 45 days of pushing paper, faxing, begging, updating HUD's and thousands minutes on hold to get the deal of the century approved for an ungrateful buyer.
Tip #1, add this clause to all of your Short Sale PA's
***If Buyer conducts a private property inspection, it needs to be done with in 7 days of seller acceptance (not Short Sale approval). It is understood that the sale is "AS IS", with no repairs or price changes. Buyer's sole recourse is to call the sale null and void if there is dissatisfaction with the property inspection.****
More tips to come
Need more information, call me !
Mike Sher,
(248) 548-9100 x127
CDPE (Certified Distress Property Expert)
MCAR, Short Sale Trainer
Max Brook and Real Estate One Short Sale Specialist.
The Mike Realtor Team Blog - Metro Detroit/Oakland County
Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City
But, We Can Help!
This is a competitive real estate market. If you have to sell and can not, perhaps it is time to look at a Short Sale. The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.
Mike, If I were representating a buyer in that transaction, I would strongly recommend walking away if that provision were added. Maybe thats your intention though. Rich
We clearly state the property is "sold as is" from the get go with the buyer having the right to have the property inspected within 7 days of lenders approval.
If the buyers want to do it sooner... they certainly are welcomed to since it's their money....
However... as a buyers agent for a short sale, I would never advise one of my buyers to pay for an inspection without a firm lenders approval in hand. Too many "what if's" when dealing with loss mitigation departments at this time...
Mike I understand what you have said in your post.In our area I am not too sure the buyers would go for it though as we have tons of short sales! It certainly protects the seller(s) and I totally understand not wanting to get to the end and then have the buyers bail...but unfortunately that happens with or without inspections etc.
Rick
I have closed dozens of short sales and if the buyer wants the house, they will get it inspected before lender approval. If that do not like it, then they can find another home. Foreclosures agents have had this take it or leave attitude and it works for them. I have an over a 90% short sale approval rate. That is higher the most inspection to close ratios.
I price my short sales right (to sell) and I am known as an agent who can get a short sale through. We are not protecting our seller's if we allow the buyers an easy out after weeks of effort. My seller's also only accepts one offer and send that one to the bank. I make sure that the buyer's offer is protected and that even if we get a higher offer, we will keep it as a back up only.
I think that the buyers have far less liability in this market. The seller loses 15-25 days of market time just waiting for the appraisal to get back. As you are all aware, a lot of deals fall apart because the appraisal came back low. Not because of the real sale price, but because the buyer needs 6% seller concessions. If the seller can take a chance on the appraisal coming back to low, then the buyer can also make a commitment of an inspection.
We need to protect our sellers. Plus, no reason for a buyer to wait 45 days and then inspect the home to find our that they do not want it. The seller, bank and listing agent need to know that the buyer will still be around when the short sale is approved. If the rest of you want to jump through hoops, cliffs and canyons on the hope that the buyer will not get a deal killing inspector or that mom and dad decide that pulling wall paper is to much work for their angel, then go and wait. As for me, I will not work for a hope any more. I sell homes and get short sales approved!!!
Amen! This is a great suggestion for another way to insulate the transaction so that it has a better chance of actually closing. Thanks for sharing.