Writing a Killer Short Sale Offer in Sacramento
March 19th, 2010 Categories: Sacramento Real Estate Trends, Short Sales
Sacramento Short Sales have exploded!
- Sac Placer ED Counties Short Sales 03 19 10
If you want to buy a home in the Sacramento area; you’d better get honed up on Short Sales! In some Sacramento area neighborhoods, short sales represent way over 75% of the inventory of active homes for sale. Short sales are getting easier to close and Short Sales are going pending much faster now too. As our Sacramento real estate market evolves; short sales will continue to be approved faster, smoother and more efficiently. Buying any home that represents a great deal in our market is not easy. Well priced homes are selling with multiple, many times over asking price offers, whether it is a short sale, REO or equity sale; buyers all appreciate value and want a great deat. Sacramento real estate has become just as competitive as the hottest of sellers markets the area has ever seen. So as Sacramento area short sales become less of a ’crap shoot’ and more of a legitimate, clearly defined and organized part of our market it is becoming more and more of an art form to write a killer short sale offer.
Sacramento Short Sale sellers and their agent’s know that the final decision is being made by the bank and that there is no real reason to counter an offer when it comes in, but well priced short sales will generate multiple offers that will give the sellers and their agents the opportunity to ‘sort through’ and pick the offer most likely to close. That’s the offer you want to write; an offer that represents the best chance to be be perceived as THE winning offer from the seller, one that will compel the seller to believe that are willing to hang with it and wait for an answer; even if it takes several months. Your offer should be written in a way the bank will have no reason to counter it and that will be easily accepted by the bank.
One way to be taken seriously as a buyer is to agree that your deposit be cashed and the money be held in escrow for up to ninety days.
Here is a link to offer instructions and our custom addendum that can be found on one of our great sister sites; realestate-sacramento.net that helps agents writing offers on our short-sales to write the best offer for their clients;
Forth Hoythas dedicated himself to helping distressed property owners. He has spend hundreds of hours learning from the pre-foreclosure experts and has obtained several designations in this field. In an effort to offer his clients the best possible results with their short sale transaction…
More questions?
Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
At The Hoyt Group, we have implemented the the following procedures
- Prior to taking a Seller’s Short Sale Listing, we collect the “Seller’s Financial Package” from the Seller which entails all of the information their bank has asked for. At this time the Seller also agrees to cooperate within our system and agrees to the process you will read below.
- The day the home goes in MLS we send the Seller’s Authorization Form to the bank. This document allows us to communicate with the bank directly.
- We market the property and price the home at, or slightly below, market value until we get an offer.
- The Seller is only looking for ONE contract to send to the bank. The Seller is looking for ONE qualified Buyer with an appropriate offer price that has serious intentions on closing the transaction. When we have this, the seller will fully execute ONE contract to send to the bank.
- The Seller does not accept multiple offers – our transactions function as normal as possible.
- We do not send multiple offers to the bank
- Once an offer is received, we present the offer to the Seller for their review. While the Seller’s bank is the one that approves the Short Sale, the Seller is still the owner of the home and the decision maker on all offers received. The Seller will fully execute the contract if it meets the criteria mentioned above.
- When a contract is fully executed between Buyer and Seller, the home is changed to Short Sale Contingent in the MLS, per MLS rules.
- Once the contract is fully executed, we submit the fully executed contract, a HUD-I, and all of the Seller’s financial documents to the bank to begin the 60-90 day Short Sale process (this is the average length of processing time – some are much quicker).
- The bank then does a valuation on what they feel the home is worth, reviews the offer and all corresponding documentation, and finally issues their decision.
1) Include our customized version of the CAR Short Sale Addendum
2) Include an As-is Addendum with your offer
3) On page 1 of the contract
1.D Close of Escrow 45 days or sooner after 3rd party approval
(see SS Addendum) where it ask for COE Date
2.C (2) Be sure and “check” FHA or VA if your buyers loan is
a FHA or VA loan.
2.D If requesting closing costs assistance please do so on
these lines, in this format. “Seller’s lender shall credit
Buyer “X” dollar amount of “X” percent of sales price
towards Buyer’s closing cost including but not limited to
the costs of items 4.A – 4.E on page 2 of the contract.”
4) Page 2 of the contract
4.A (1) Most banks will pay for Pest Inspection, However,
they will not pay for any Section 1 repairs.
4.B (1-5) With the exception of Chase, most banks will pay for
these inspections. Not Repairs.
4.C (1-2) Most Banks will pay for these Government
Requirements.
4.D (1-2) Please mark all closing costs as being paid for by
the Buyer. (we’ll address how to ask for those
appropriately on page 1 if the Buyer needs
closing costs assistance)
4.E (1-2) Please mark paid by Buyer. These cost can be
added into Buyers closing costs.
4.E (3-4) Most banks will pay all fees associated with
HOA’s.
4.E (5-6) Do not request the bank to pay for a home
warranty. If the buyer would like a home
inspection, mark “Buyer to Pay”.
5) Page 3 of the contract
8.B (1-5) Unless included in the MLS listing, all personal
property items are not included in the sale.
6) Page 6 of the contract
25.E Add Short Sale Addendum and Addendum A.
Be the first one there, write a good, clean offer!
More questions?
Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
