The Key to Short Sale Success
In business the key to success is having a positive attitude, and outlook. This very true in Minnesota Real Estate. Now more than ever, having a “Positive attitude Outlook” is key to having a successful short sale deal. In order to have a proper” Positive attitude Outlook” we need to ask ourselves a few things:
What are the parties involved thought process?
Throughout a countrywide learning conference concerning the short sale method, we have found the following outlooks of the parties involved in the process:
- Listing Agents- The short sale method is too drawn-out. It is difficult to have transactions with the short selling banks.
- Buyers- The short sale method takes too much time. Buyers want an response from the bank as soon as possible. Why should I have to wait to buy a short sale when I can buy something else that is non-distressed?
- Sellers- What is the point of going through this long short sale method? I will just let the bank foreclosure on my house.
- Banks- Change their outlook all the time!
4 Key’s to a Successful Short Sale
Below are the following remarks in order to change their outlooks.
1.) Listing Agents- However the short sale method is slower than a traditional deal. On average the short sale method take about 72 days. If the Minnesota agents are well prepared to negotiate with the bank, through a law firm that has knowledge in the short sale method, their outlook, and attitude will change. Taking weight of the negotiate off agent will allow them to correctly market the home and help the distraught seller that is about to go into foreclosure.
2.) Buyers- Recognize that the short sale method is drawn-out and not every buyer is going to be a short sale buyer subject to their specific conditions. Though, according to an Article about Foreclosures dated 8/23/2011, a buyer who does get involved in a short sale will usually buy the home at a 21% discounted to the current Minnesota market. That means IMMEDIATE EQUITY for the possible buyer. In many circumstances this will transformation the outlook of the buyer.
3.) Sellers-In just about every situation a short sale is a much better alternative then a foreclosure.
4.) Banks- Change their outlook every day. Though, through effectively negotiating 2000 short sale transactions and more counting, we found out one thing. Banks are more and more open to the short sale method. When a bank approves a short sale they are pricing it at 79% of the current Minnesota market value. If it is a short sale they will sell if for 60% of the current market value.
By changing the banks mind and having more properties got into short sales instead of foreclosing we are helping the community and the Minnesota Real Estate market.