Another week passes and plenty of horror stories about short sales do too. If you are a seller, read up – this is all about locking in the buyer upfront, keeping the deal alive, and not ending up on the courthouse steps sans your house. There are plenty of reasons why a short sale will fall apart and often times at the last second. Don’t let that happen to you!
- Make sure you have the buyer use an “as-is” contract. You don’t want to be obligated to make any repairs. Be sure to make a narrow inspection time, 7 days or less if you can. The less time the buyer has to back out the better.
- Don’t forget to use a Short Sale Addendum. This will make the sale contingent upon your lender approving the sale and will help to protect you throughout the process. Try to allow for 60 or 90 days for lender approval vs. the normal 30, in case the sale is not approved in 30 days.
- Make sure the buyer provides proof of funds or a Pre-Approval from a lender. This way you know the buyer is credible and the deal can actually close once you get lender approval.
- Make the buyer review condo docs and get approved by the association to purchase your home prior to the short sale approval. Sometimes when the deal is finally approved, lenders force a very quick closing and the last thing you want is to be hung up by “condo commandos”!
- Set expectations for the buyer. Let them know this could take 3 or more months to close due to the lender dragging their feet. If you are open and upfront, there’s less chance the buyer will back out later on.
- Require the buyer to make a deposit when they sign the contract. The buyer needs to have some “skin” in the game. It’s surprising to see how many buyers are going around town and offering on 5 or 10 short sales, knowing they can back out at anytime with no recourse. They’ll just buy the best deal! You want to avoid this at all costs.
- Make sure you write into the contract, “Short sale is contingent upon terms that are satisfactory and acceptable to seller.” With this phrase, you, as the seller, can always walk away!
- This should be #1: Hire a professional Realtor. (Wink, wink) They can guide you through this and get you to a closing.
Need help Selling, Buying, or with Property Management? Gabe and Gulf Pointe Properties are glad to help: Contact Gabe directly at: 239.825.2234, Gabe@GulfPointeProperties.com or www.GulfPointeProperties.com Gabe Mellein is the broker of Gulf Pointe Properties, He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate.