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Are you buying because of the $8,000 credit? Looking at short sales, you need to give the bank a timeline and be prepared to walk if they can’t meet it.

Give short sale banks a time lineAre you buying because of the $8,000 credit? Looking at short sales, you need to give the bank a timeline and be prepared to walk if they can’t meet it. I tell every one of my buyers that are looking at short sales, that it may not be worth it and neither is the $8,000 tax credit. But, if you are looking at short sales, give the bank a firm timeline and be prepared to walk away if they aren’t willing to meet it.

You see, many buyers are willing to pay more for a home than it is worth just to get the $8,000 tax credit and I tell them that it might be better to wait until December to buy when fewer buyers are looking. But, if they are looking to buy now to get the tax credit, the deadline of November 30th is fast approaching.

What I’m doing with buyers right now is, I’m telling the banks that if they want this offer, they need to close by November 30th, and if they can’t do that, then our offer is lowered by the $8,000, and that my clients will lose by not closing by tha tNovember 30th deadline.

My hope is that by making the banks accountable, maybe, just maybe, we can get a few of these short sales off the market before winter hits when the market looks like it may take a slide backwards because of the loss of the tax credit.

What are you telling your clients that are counting on the $8,000 tax credit when all they can afford are short sale properties?

Respect Realty LLC (Expect More)

 

At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.

 

Reach out today, we look forward to talking with you!

 

Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)

(503)564-3130

info@RespectRealtyNW.com

www.RespectRealtyNW.com

 

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Comment balloon 20 commentsRespect Realty LLC • September 18 2009 10:05PM

Comments

Todd, that sounds like an excellent way to take care of your clients possibly losing the $8000 tax credit due to dragging heels of the bank.

Posted by 1~Judi Barrett, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) almost 11 years ago

I am feeling really sorry for all title company employees on Nov. 30 (and agents representing the 1st time homebuyer of a short sale).  It will be a zoo I'm sure!!

Posted by Sonja Patterson, Texas Monthly 5-Star Realtor Recipient for the Hou (Keller Williams - BV) almost 11 years ago

Todd, Have any of the banks accepted your proposal? That may be a great way to get them to 'move'. Good luck with that and I will pass it along! Have a great weekend!

Posted by Wanda Kubat-Nerdin - Wanda Can!, So Utah Residential, Referral & Relocation REALTOR (Red Rock Real Estate) almost 11 years ago

Todd - Interesting approach.  None of my first time buyer clients are looking at short sales because of how long they're taking to close.  I think I'm going to send this post to some of my Realtor friends to see what they think of this approach.  Thx for a different idea in this crazy market.

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) almost 11 years ago

Todd - I have the same questions as Wanda, and will be curious to know the answer. Way to think outside of the box.

Posted by Karen Cooper, Helping Homeowners w/Home Loans in 27 US States (Karen Cooper | Sr Retail Loan Originator ! NMLS # 223305 | 360 Mortgage Group LLC Austin Texas) almost 11 years ago

Todd, thanks for sharing.  This is very interesting approach, I think I'll adopt it with my buyers. 

Posted by June Piper-Brandon, Piecing Dreams One Home at a Time (Houwzer Inc) almost 11 years ago

Todd - My first-time homebuyers are steering clear of short sales because of the time deadline.  Usually, I will call the listing agent to find out where the short sale is in the process.  If it's a local bank and we have an actual live person to speak with that has authority to make decisions, then we will look at the home.  Otherwise....we just don't have that much faith in the lenders to close in time.  I like your approach, though.  Would be worth trying. 

Posted by Lina Robertson, REALTOR® Serving Springfield, Nixa and Ozark, MO (RE/MAX Solutions and RE/MAX House of Brokers) almost 11 years ago

Todd,

Although I can appreciate your approach, too little too late for most. How many agents are dealing with anyone other than the negotiator at the bank. The negotiator the messenger doesn't make the decision. The decision makers don't care because, at least in my area, there are many more offers ready to step past the last guy should someone walk. Unlike an asset manager that makes the decision the dilemma is the second or third lien holder making it work. So I don't see we would have leverage.

Lina mentioned calling ahead and seeing where they are in the process. When we first started seeing short sales that was easy. Now, many don't want calls and say so in the MLS. Don't call.

So although a good approach, we are not in the drivers seat and I am steering away from shorts for a buyer that wants to take advantage of the credit.

Posted by Ken Barker Realtor® GRI, E-Pro Certified (Dilbeck Real Estate) almost 11 years ago

Good luck! I'm afraid the banks won't listen to the potential loss and will continue to be as difficult to deal with as they are today. I hope they do but I'm not expecting it.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) almost 11 years ago

boy you've really been stepping up the posts the last few months - doubling up!  But i do miss the todd talk - they're all stats! :-)

Posted by Liz Moras Migic, Chilliwack, British Columbia - Realtor almost 11 years ago

Todd - this is sure right on ... just had this conversation the other day with a fellow agent!  Great ost ... more buyer should read this!

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) almost 11 years ago

Nice angle! Of course they will just ingnore you and do as they please anyways. They will drag it along and then act like they don't care when you rescind your offer. They get paid by the hour. What do they care if it ever closes?

Posted by Mark Hall, Homes for Sale Vancouver Washington (Realty One Group Cascadia) almost 11 years ago

Great idea, Todd. Would love to know if any banks actually pay attention to your request.

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) almost 11 years ago

Todd, I'm with the others here, this is a great idea, but I also don't the banks will care. I think they may actually see if you will walk and then be left with a bunch of foreclosures in January and February.

Posted by George & Arlene Paukert (Road to Wealth, Inc.) almost 11 years ago

Probably Jan. and Feb is going to be the time to buy up some deals!

Posted by Jim Allhiser, Salem, Oregon Home Inspector (Perfection Inspection, Inc.) almost 11 years ago

Todd --- I'm telling my agent-owners to do their best not to sell a short sale to a first time home buyer wanting the $8,000


         Mama Liz

Posted by Liz Loadholt, Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC (Liz Loadholt- AgentOwned Realty- Covering SC) almost 11 years ago

Todd, a good approach, let us know if it works for you.

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty) almost 11 years ago

Hi Todd... unless a lienholder has given me guidance that says a 60-90 day close is achievable, I discuss this question with my sellers and, with their approval, I have been advising agents who call me with notice of forthcoming offers that neither I, nor the seller can guarantee that this transaction will close in time to take advantage of the $8,000 first time home buyer tax credit.

Posted by Steve Shatsky almost 11 years ago

Hi Todd -- Great post.  I tell my clients to stay away from short sales at this time as chances are, it won't close in time.  An an 8K reduction in their financing is worth far less than the 8K hard credit.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) almost 11 years ago

I have this letter signed by both the sellers and the buyers on all three short sale offers I have in. I will be sending this addendum over to the banks on November 1st and I guess we will see what happens. I know if I was an investor and got that letter, I would react and get the sale done rather than play around any longer.

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) almost 11 years ago

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