I hope it only takes one time to sell a short sale listing before it closes. Unfortunately, all too often it takes -2 or 3 or 4 or 5 or even more times of selling a house on a short sale before the house closes. There are many reasons for having to resell the house.
The main reason is that the buyer gets tired of waiting for bank approval and does not perform once the offer is finally accepted.
Also, many times the bank wants more money for the home than the market will bear.
Sometimes the home inspection nixes the deal.
Sometimes the buyer's loan falls through.
Sometimes there are IRS liens or other liens on the homes that further delay or prevent the short sale.
For these and other reasons too, it may take many times of selling a home, before the home actually closes escrow.
LORI BOWERS
http://www.desertareahousingmarket.com
The Lori Bowers Group
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La Quinta, Palm Desert, Indio, Rancho Mirage, Coachella , Indian Wells and the surrounding Palm Springs Area.
78065 Main St., Suite 107
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La Quinta, CA 92253
Phone: (760)777-8788 • Fax: (760)771-5355
I like to open escrow and get the buyer to deposit their earnest money. As well I make sure the buyer understands the complete process of the short sale. Many agents don't tell their buyers the complete short sale process. Buyers need to know every step and need to be kept in the loop of everything that happens. It makes them feel like part of the transaction and their time is valued.
Sounds like you have lots of patience, Lori. That must be one of the main reasons you are so successful with short sales.
Thanks Joann and have a Happy Thanksgiving
I am about to process my 4th contract on a $240,000 property. Lori, I have not closed because of 3 of the reasons you mentioned. But, I must put a plug in for Certified Distressed Property Expert (CDPE) designation. Having completed the certification a month ago, I learned ways to avoid some of the problems.
Case in point, write an adendum requiring the buyer to have their inspection within 10 days of execution. This gives the buyer the information they need to determine if there is a problem with the property and waiting 4 months for that same answer.
At any rate, good post. By the way, dividing the commission for a $240,000 listing by 4 (the number of executed contracts) nets me $1800 per transaction. Certainly not a good way for me to run my business!