Short Sale Training - Short Sale Mistakes

I'm writing to let you know about the best way to speed the Short Sale process up that only a few Realtors are doing that really isn't being used in the real estate community. Not using this setup is the Greatest Mistake most Short Sale Realtors make. It may not be what you think, on account of it's not a "traditional" real estate strategy...

Before we get into this little secret, let's look at how most Short Sale Realtors go about their business.

There are many Agents that are literally refusing Short Sale listings. Some Realtors think that it takes a long time to negotiate with lenders. Other Realtors have had Short Sales that took so long for the bank to get back to them, that they lost the buyer and the deal falls apart.

So, now let's continue and we'll talk here shortly about how to speed up the Short Sale process.

Eric is a real estate agent who has decided to do his first Short Sale listing. He lists the property and presents the Short Sale packet to the lender.

The house then sits on the market for 2 months before Eric receives an offer.. Once he receives the offer he sents it to the lender who orders a BPO (Broker's Price Opinion) for the property.

So now it takes the bank up to a month to complete the BPO

Once the BPO value is updated in the system, it then often takes the bank another 3-4 weeks to get an acceptance or rejection on the Short Sale offer.

So what is the issue you ask?

Ok, so finally we have come to the best to add efficiency to your short sale deals

Most Realtors never send in a contract on the home when they submit the completed Short Sale packet. In actuality, it is not a full Short Sale packet if it doesn't have an offer.

If you don't send in an offer, the bank will usually not order a BPO on the home. After the offer is sent in to the bank, it could take a month before the BPO comes in and is adjusted in their system. At this point it could still take up to another month for the bank to get back to you with an approval or a counter offer.

In total, you could have a gear up and adequate buyer that is waiting 2 months just to see if their contract is accepted or declined.

Often time the qualified buyer that the Realtor had is backing out because the short sale transaction is taking too long.

However, if Eric had submitted an offer on the home when he submitted the original Short Sale packet to the bank, he could have cut this process time in half!

Submitting a contract on the property with your completed short sale packet, it will prompt the bank to order the BPO right away.

So now you have given yourself the option to market the house for a real buyer and save much processing time.

So you may be asking, how do I send an offer at the same time that I submit the short sale package?

This is where the "lowball offer" comes into play.

Find an investor that is open to submitting an offer of 30-40% below fair market value.This is where your networking comes into play. You will want an investor friend, someone that you trust to submit an offer of about thirty percent below market value.

This is where your first offer comes from.. By submitting the offer with the package, the bank will order the BPO. Now, here is the cool part.

The chances of this offer being accepted is about 2% but even if it does, your investor friend just got a smokin' deal.

But guess what?

The objective of submitting this low offer isn't necessarily to have it accepted, but however to shorten the short sale process.