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.
Labels: buying short sales, destin real estate, destin short sales, short sale contracts, short sale offers, wendy rulnick
Florida Short Sale Contracts Are "Contracts"
 When I wrote " When is a Contract NOT a Contract?" it stirred up over 40 comments and some controversy. The crux of the matter is that many Destin Florida listing agents are accepting more than one "primary" contract on a Short Sale listing. There is a prevalent belief in the Emerald Coast real estate market and others, that a contract is "not" a contract despite being signed by both buyer and seller, until the bank approves the price and short sale. Thus, the thinking goes, the Short Sale seller is not truly obligated to the buyer who wrote the offer, and can simply sign multiple contracts with parity. Because of this misconception, many buyer's agents also think release and cancellations are not needed when buyers "walk" prior to bank approval. Also, the practice of accepting more than one "primary" offer is likely a disservice to sincere buyers who are subjected to auction-type handling of their offers. There may be legal ramifications, as well.
I have since tracked down a definitive answer from the Florida Association of Realtors staff attorneys, as written in Florida Realtor Magazine, September 2008. The following is from the Legal Q&A that appeared on page 9 of the magazine. It clearly reinforces the fact that a Short Sale contract is a "contract" and that the seller should only sign another contract with a "Back-Up" clause attached.
Legal Hotline
Contracts Q I have a fully executed FAR9 Residential Sale and Purchase Contract along with the FAR SSA-2 Short Sale Addendum to Purchase and Sale Contract. We are still within the time period in which the seller may obtain the lender's approval of the short sale, and now another buyer has made what is arguably a better offer. May the seller sign the second contract? A The seller may sign a second contract but should do so only as a backup contract with the appropriate backup contract addendum attached. If using a FAR contract, use addendum P(1) from the FARA-9 Comprehensive Addendum. Of course, the FAR SSA-2 Short Sale Addendum should also be used.
Here is the link http://www.floridarealtors.org/FLRealtorMagazine/2008/September/0908LegalHotline.cfm
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
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 also negotiates successfully to her buyers' and sellers' advantage. She is supported by a team of top buyer specialists. Wendy lists and sells homes, condos and townhomes in Destin Fl and the surrounding areas. She was ranked in the top ½ percent of all Realtors on the Emerald Coast of Florida in 2008 for resale listings sold.
All Rights Reserved. "FLORIDA SHORT SALE CONTRACTS ARE "CONTRACTS" 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. Labels: destin florida real estate, destin short sales, short sale contracts
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