"Others Can Learn From You"

I recently had a short sale approval for a home in Niceville, Florida. The long and torturous process was with Bank of America. This one took four months, although it was approved just prior to that for another buyer who did not close. All the while, the buyer’s agent, Jimmy, was a consummate professional. Prior to writing the offer he requested the exact terms the seller was looking for. His buyer obliged by submitting a contract with the right title agent, earnest money deposit and timeline. The buyer loved the house and was willing to wait.

Each Friday throughout the process, Jimmy would email me a gentle, "Any updates?" That was it. As the approval deadline loomed, he told me, without fluff, that the buyer was a bit concerned as she needed to be in a house by a certain date.

But no panic button was pressed, no threats, direct or indirect, were aimed my way. He just relayed the facts, in a pleasant and honest manner. As the approval date grew near he waited. He kept his buyer alive.

"Just a few more weeks!", I told him, "We are in Phase II. I have escalated the file!" The negotiator, who had never responded to any of my emails for over two months, suddenly called. "There are just a few more things I need….", he said.

We worked together to satisfy the items the investor required. "I know the approval is approaching soon!" I told Jimmy. It was the truth.

A few days later, I got the happy call from Bank of America. Done deal! Yippee! I emailed Jimmy the good news. In a workmanlike manner, he completed the inspections and got repair estimates for the buyer. We are closing next week. Today I emailed Jimmy what I thought....
"Thank you for being an unbelievable professional. Others can learn from you."

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Destin FL Real Estate

5 Steps to Get Your Short Sale Buyer to "Walk"

Today I was talking with a title agent in my Destin Florida market who handles short sale negotiations for agents. He lamented that he had two contracts recently fall apart, with buyers walking.
"Why?" I asked.
"Well, the agents don’t have the seller sign the contract, so it is just an offer. There is nothing to hold them."
"Stop doing that!" I told him, "I would never send an offer in to a short sale lender."
Which brings me to my point-- "How can you increase the chances of your buyer 'walking' from a short sale?" Just follow these tips:

1. Don’t have the seller sign the contract. Then it is not a contract, just an offer, and the buyer can bail without repercussion.

2. Never ask for an earnest money deposit. Why ask the buyer to put anything on the line to show his investment in the contract? Then he can walk free, usually, with nothing to "lose".

3. Use a 60 day closing and 30 day short sale approval time line. Sure, that will be enough time to get a typical short sale approved- Not! Oh well, if the time frame passes after hours and days of work invested, and the buyer doesn’t "stay", you can always start all over on a new transaction.

4. Write in the contract that the buyer can "Withdraw at any time". That should simplify things.

5. Finally, let the contract be submitted to the lender with others, just like an auction , because the short sale lender will abide by contract provisions and honor the "primary" offer first, right? That tactic will make your buyer stick like glue.

Follow these tips, and you'll be sure to decrease your chances of closing on a short sale. Or, get a buyer with realistic expectations, a good deposit, one strong offer, and an "executed" contract, and be on your way to a successful short sale closing.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Destin Real Estate Buyer Defaults Buying Short Sale Condo

Why do many Destin Florida real estate buyers "walk" in the middle of a short sale? As a buyer's agent you've worked hard. You've called and emailed your buyers for months, maybe longer. You've shown them dozens of properties, perhaps even written an offer or two that didn't work out. Finally, they get a contract accepted on a short sale. After two months of waiting, they "walk"-- prior to the lender approval timeframes allowed in the contract. They DEFAULT on their contract-- without penalty. Not only have you lost a sale, the buyers have tied up the sellers, the listing agent, the buyer's agent and the lender. By tying up the lender, they clogged the short sale system for other buyers - who are willing to wait for the home they want.

I am prompted to write, because I just received a cancellation demand from a buyer for a waterfront condo in Destin Florida. The buyer's agent emailed me the request for the $3000 deposit to be returned to the buyer. The contract had allowed 30 more days for bank approval, in this case Countrywide. Through frequent communication, the buyer's agent knew written approval was imminent. When I asked why her buyer was trying to cancel, the agent said, "He is tired of waiting and doesn't trust the short sale process." I told the agent that the short sale approval had just been delivered to my email. and we actually had another 30 days to obtain approval per the contract. I told her he would probably "own the gulf-front condo within two to three weeks". She said "he did not care, he had changed his mind, and it didn't matter if the seller or I thought he was ‘loony' or a ‘nut'". And... he still wants his deposit back.
In this case, adequate dates were built into the contract. There was a $3000 deposit and the buyer had already completed his home inspection. But he simply "defaulted". He accepts no contractual obligation because of his default- he feels he is entitled to his full deposit back. The buyers stance will not change even after wasting everyone's time, and putting the sellers on the edge of foreclosure by tying up their condo.

What is the seller's recourse? In Florida, title agents often hold earnest monies. They can only release the deposit when both buyer and seller agree. In this Destin Florida case, the buyer is requesting the release of escrow funds, but the seller will never agree. Thus, the money could forever be tied up without further proceedings. It is unfortunate that many buyers can "walk" without fear of recourse, as most Florida short sale sellers have no means to pursue them.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search Destin Real Estate
Short Sale Pre Foreclosure Help.
Read Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com

When is a Contract NOT a Contract?

Is a contract NOT a contract when it is signed by both buyer and seller? Again and again, buyers are walking from short sale offers with no penalty, sometimes encouraged by their selling agents. Here are two emails below from agents in the Destin- Navarre Florida area whose buyers simply backed out of short sale offers after three months of negotiations:

"Yes it is a long time and they do understand the contract but they are not obligated to the contract until the bank responds."

"It was contingent upon the banks acceptance of the offer and the bank did not accept the offer yet. We did not have a contract only an offer. I do not see the need of a letter or a release of contract since there was no contract."

My question to these, and other agents, is, if it is not a contract, what is it? Of course, it is a contract. Contracts have contingencies all the time that require action by third-parties. For example, the buyer's lender must make a decision on the borrower's ability and the value of the home. The buyer's home inspector will provide data on the home's condition. The title agent will determine if there is marketable title. These contingencies do not negate the fact that there is a contract. But any one of these factors can initiate a termination of the "contract".

What steps can listing agents take to ensure their seller is protected from "escape artist" buyers?

1. Require buyer contingencies to be fulfilled without waiting for lender approval, such as home inspection and mortgage application.

2. Require an earnest money deposit (called escrow in some states) upon acceptance by the seller, not upon lender approval.

3. In return for buyer's forthright investment in the contract, place the property "under deposit" in the MLS system.

Until selling agents educate their buyers about the gravity of being in a contract when buying a home, we will continue to see short sale contracts fall apart.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search Destin FL real estate
Short Sale Pre Foreclosure Help.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her dients' advantage. She is supported by a team of top buyer specialists. She lists and sells homes, condos and townhomes.

All Rights Reserved. *When is a Contract NOT a Contract?* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.

This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information

Short Sale Offers- Is This a New Trend?

In the past ten days, I've had agents call me with "verbal" offers on three of my short sale listings.

Property: House in Navarre FL List price $114,000...verbal offer $70,000
Property: Condo in Sandestin FL List price $580,000...verbal offer $500,000
Property: House in Niceville FL List price $199,900... verbal offer $120,000

Is this a trend? In each of these cases, the selling agent said the buyer absolutely would not or was not qualified to go higher than the verbal amount. I wonder then why these agents were showing properties to buyers that were up to 60% higher the maximum price buyers were willing or able to pay? In one case, the buyer was going to make an offer without seeing the property, and then wanted an "out" written up contingent upon a satisfactory pre-closing inspection. His agent even asked me how to draw up contract language so the buyer would not lose his deposit if he chose to back out.

First of all, as an agent, why waste your time? Sure, some short sales or traditional sales are overpriced so that one might be able to procure them for 20% less than list, but 40%? Why take that gamble? When a buyer requests to see properties much higher than they are qualified for or are willing to pay, you are wasting your own time, the buyer's time, the seller's time, the short sale lender's time, and the listing agent's time. In the current economic situation, I understand why many agents want to grasp at any possible way to make a sale. However, one might be better off waiting for a qualified buyer whom you know has a reasonable chance of closing.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search Destin FL real estate

Short Sale Pre Foreclosure Help.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her dients' advantage. She is supported by a team of top buyer specialists. She lists and sells homes, condos and townhomes.

All Rights Reserved. "Short Sale Offers- Is This a New Trend?" Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information

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How "Not" To Buy A Short Sale

Yesterday I received an offer on a Short Sale listing in Destin Florida. The list price was $216,000, a bit below market, and the house had been for sale for over five months. An agent produced an offer for $175,000 and it was contingent on seller's lender approval within 45 days. It also stated "The buyer has the right to withdraw the offer at any time prior to seller's lender's approval".

I presented this offer to my seller. We both knew $175,000 was nowhere in range of market value. Additionally, 45 days for lender approval is not realistic, with Short Sale approvals sometimes running 120 days or more. Finally, the buyer having the right to withdraw the offer at any time, made it a non-offer. So we countered as follows:

-Purchase price: $210,000
-No right to withdraw at "any time"
-90 days for bank to approve, with additional 30 days if needed

The buyer's agent responded the next day: "My buyers have decided not to accept the counter offer conditions, they don't want to wait 90-120 days to find out whether or not their offer will be accepted. If they knew within a few weeks that the seller's lender would take their offer but it would take that long to close then they wouldn't mind waiting. It would tie them up too long and they want to find a place soon. I explained to them the timing of the short sales and they will try to find something that isn't one."

This agent should have found them a non-short sale in the first place, if that was the buyer's outlook, and the agent should have educated the buyer about the Buying Short Sales. Instead, the buyer was attempting to tie up the property, generate an avalanche of paperwork and phone calls, and then say "no" at any time. The practice of agents writing offers with the buyer's right to withdraw at any time has grown for two reasons. One, because many Short Sale listing agents send multiple, sometimes unsigned offers to the lender in a "bid" situation, and the other, by buyers simply frustrated with waiting. When more listing agents practice One Strong Contract principles, buyers will become confident that the their Short Sale contract will close. But before then, these types of offers will continue to run rampant in the marketplace.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search Destin Florida real estate and vicinity.
Short Sale Pre Foreclosure Help.
Read my Blog.

Specializing in real estate sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *How "Not" To Buy A Short Sale* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.

Short Sales: For Buyer's Agents

Are you the selling agent in a Short Sale market? Arm yourself with information for a successful transaction:

1. Prepare your buyer by going over steps in Buying Short Sales.
2. Ask the listing agent if he has gathered the information necessary to submit the Short Sale package, including: letter of authorization, financial statement, recent pay stub or last quarter profit and loss, recent bank statement, last year's tax returns, hardship letter, and payoff if more than one lender. If the listing agent has not already done so, prepare the buyer for a longer wait. I would also ask what the hardship is. If the listing agent will divulge that information, it may assist you in determining whether it would be a viable short sale situation. The hardship should be loss of income, medical, divorce, etc. where they might be a reasonable expectation for approval by the lender.
3. Decide with the buyer whether to make the contract effective date, depending on your board of Realtors, the date the seller signs the contract, or the date the offer is finally approved by the seller's lender. The contract effective date is normally the trigger from which other actions are based. For example, if it is customary in your market to conduct inspections within two weeks, your buyer may wish to wait for bank approval before proceeding. Conversely, if the buyer conducts inspections early, that shows strong intent to complete the transaction.
4. Advise the buyer regarding potential valuations of the Short Sale property by the lender. If the buyer is going to make an unreasonable offer that you know may not be approved after several months of waiting, it is better to inform him at the beginning. Look at the property in the eyes of an appraiser. If recent comparable sales don't come close to justifying the buyer's offer, this may not be a transaction worth pursuing, for you, the buyer or the seller.
5. Once the contract is signed by the seller, follow up gently with the listing agent. A call every two weeks to check on the status of the offer with the lender should be enough of a reminder, and should satisfy your buyer's anxiety during the long wait toward approval.

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Sandestin, Santa Rosa Beach, Blue Mountain Beach, Dune Allen, Watercolor, Rosemary Beach, Seaside, Niceville, Bluewater Bay, Freeport, Crestview, Navarre, Fort Walton Beach, Mary Esther, Shalimar and vicinity. Call 1-877-487-9639.

www.ShortSaleForeclosureHelp.com