Most real estate professionals equate the term “best offer” with the highest price, and in a normal transaction this is often the case. But in short sales the highest offer received is not always the best offer. Certain offers are much stronger for the purposes of a short sale because they ensure the buyer is committed and able to close. Here’s what we recommend for a strong short sale offer.
1) Large deposit: Buyers who “put some skin in the game” with large deposits are going to stick around until closing. We recommend obtaining a deposit of at least 10% when possible.
2) 90 day timeline for approval: Most short sales take less than 90 days for an approval but that isn’t a given. Protect yourself and your seller by requesting a 90 day window instead of 45 or 60. Disclosing upfront that you can’t guarantee the speed of the short sale also helps maintain a smooth transaction and cuts down on frustration.
3) 30 day timeline to close: Again, it’s important to ensure your buyer will come to the closing table. Even after an approval there is no guarantee the short sale will close. Many elements outside our control, such as financing, can delay or kill a deal. In order to make sure there’s enough time to deal with any unforeseen issues, it’s prudent to request an additional 30 days to close.
4) Early Inspection: By completing the inspection early on, you avoid any “surprises” later on down the line and reduce the possibility the buyer will choose to walk before the closing.
Some of the offers you receive may meet these guidelines and some may not. If you receive an offer that doesn’t and/or is unable to meet the specifications above it may still be worth a look over.
Mark Greene: From the Short Sale Frontlines
Remember- you’ve got an entire short sale team behind you! We’re always available to review offers and help determine which one will be the best for your short sale.
2) 90 day timeline for approval: Most short sales take less than 90 days for an approval but that isn’t a given. Protect yourself and your seller by requesting a 90 day window instead of 45 or 60. Disclosing upfront that you can’t guarantee the speed of the short sale also helps maintain a smooth transaction and cuts down on frustration.
3) 30 day timeline to close: Again, it’s important to ensure your buyer will come to the closing table. Even after an approval there is no guarantee the short sale will close. Many elements outside our control, such as financing, can delay or kill a deal. In order to make sure there’s enough time to deal with any unforeseen issues, it’s prudent to request an additional 30 days to close.
4) Early Inspection: By completing the inspection early on, you avoid any “surprises” later on down the line and reduce the possibility the buyer will choose to walk before the closing.
Some of the offers you receive may meet these guidelines and some may not. If you receive an offer that doesn’t and/or is unable to meet the specifications above it may still be worth a look over.
Mark Greene: From the Short Sale Frontlines
Remember- you’ve got an entire short sale team behind you! We’re always available to review offers and help determine which one will be the best for your short sale.
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