Temecula and Murrieta CA Short Sale Homes Could Be Your Best Investment.
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Short sales are now a huge part of the Southern California real estate marketplace. Many real estate brokers, let alone buyers, do not understand short sales and tend to avoid them. The first big challenge in pursuing a short sale is finding a broker willing to put the time necessary for the job. Most don't want to show these for many reasons. The big three are short sales are a lot more work, homebuyers get very impatient, and they can be stressful if done wrong. Let me explain these three challenges in order. First, short sales are significantly more work because instead of a two party transaction with just a homebuyer and homeseller, you have a four party transaction with the buyer, seller, and two banks. And in this situation the seller and two banks don't act the way a traditional seller would act. The seller is upside down financially and really wants the banks of their back. They don't always care about getting the best price which is good for you. But the homeowner can also work a little against the purchase occassionally by not showing the house in the best of shape or giving access to the house. Meanwhile, the banks aren't attached to the house, adhere to certain bank rules and can be difficult to get on the phone and negotiate with. They often use agressive type strategies in their efforts to maximize the absolute most money. In fact, the first and second loans negotiate among themselves because what one lender gets financially the other doesn't. And getting in contact with those closers require completed paperwork packages from the seller and an purchase contract from a potential buyer before the clock can start. Eventually there has be an agreement between two banks, a seller, and a buyer. By the time you get this all set, a period of 2-3 weeks can easily pass. Plus with the large amount of short sales on the market many banks are understaffed to handle the workload. Once you are past that issue, the second biggest challenge is buyer impatience and lack of comprehension. The worst buyer for a short sale is many times an excited first time homebuyer unless they have a concrete understanding with their real estate agent. Because when the agent has everything forwarded to the financial institutes, the banks will take 10-14 working days to even examine it and pass it to a bank closer or negotiator. Asking an excited couple to wait this out is rough. This is especially true in Menifee and neighboring real estate marketplace because there are so many properties on the market. Plus, buyers today have everyone they know in their ear whispering that they should get better response time or more service when they buy. Buyer lack of patience is the biggest issue and should be discussed prior to bank short sale properties are shown. If the homebuyers have the patience and a good agent, they can get a huge discount! Here is an recent situation. Last month I highlighted a house in Wildomar CA for possible short sale deal to a client of mine where they could get a house more than 75k off the market comparable properties. But they would to have to wait a bit to hear from the banks, perhaps as long as 2-3 weeks. The listing was perfect for the couple and was move in condition. Their reaction was in this market they insisted on getting a response inside of 48-72 hours. I chose to risk my client contact and firmly told them that this deal isn't one you should go after because the banks don't remotely care about you. They work 9-5 and have no attachment to the property and if you want to miss a fantastic deal, that is your choice. But I am willing to take on the task if you can have the patience. And when we get approved, you will be happy and enjoy significant equity and I will earn your business and referrals for the next time. After further discussing the details, they put in an purchase offer, got approval, and will close at the end of this month. Dedicated lines of communication, integrity, and patience can get the job done! The last hurdle is stress. Some of this has already been discussed when dealing with patience. However, the stress of what the bank will do, what people are advising you to do, and how drawn out the process is can make you crazy. For the broker, working with the other party and banks is not a lot of fun. For the buyer, not screaming out your stress on your agent is vital. Much of the potential tension is relieved by a thorough comprehension about the transaction and a twice a week update. If the buyer hears that the banks haven't moved, they shouldn't overreact. With all that said, why do I recommend examing bank short sales? Because bank short sale listings can be a great opportunity to get a wonderful new home at a incredible discount. Short sales homes are usually in much better shape than fully bank owned homes and many time they are still being taken care of. Also, they can be ideal for purchase price negotiation for many of reasons. Right now, banks are filled to the gills with in default properties and the last situation they want is another, especially when there is a qualified buyer in the mix. Why on earth would they want to gain another when given the chance to sell one while more fees accrue or the market goes down further? Their deduction is your gain and an good agent's goal is to get you, the client, the best situation possible for today and earn your trust for tomorrow.
Stefan is a top performing real estate broker of <a href="http://www.stefanwest.com">Temecula CA and South Riverside County Real Estate</a> and expert in the adjacent areas of Murrieta and Menifee real estate. Please visit http://www.stefanwest.com for additional information.
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