Relocate to Wisconsin : "I am advising my clients not to sign your Addendum," said the Selling Agent

"I am advising my clients not to sign your Addendum," said the Selling Agent

  Everyone has their own style in real estate....and as long as you are working within the confines of the law....whatever method you choose that works is the one that you use.

    We have done short sales for years....for years it was...and sometimes still is, an essential part of our divorce niche.  Our way of doing them is not how upside down houseeveryone does them....for us,  it has proven to be the way that they close...and there is a new beginning for our distressed sellers and a happily ever after for the Buyers.

   We worked with an attorney to write an addendum which our Sellers require with each offer.  It is called Addendum PRN and it states very simply that the inspection and earnest money timelines run from the Sellers' approval not the Lender's...and it is non negotiable. The addendum is a document in MLS, the instructions are in the private remarks that this must be included with the offer. If this is not an agreeable condition to the Buyers, they need not write an offer. 

  WHY Addendum PRN ?  If we wait until the Lender approves the short sale...in hundreds...only one has not...60ish days (depending on the lender) will have passed.  During that time...the Seller believes they have sold the house and the Buyer believes that they have one. If an inspection is done 60 days after the Seller accepts the offer and there is a defect found that the Buyers feel is reason not to continue with the transaction...everyone just wasted 60 days.    Selling agents occasionally object..."What if the short sale is not approved by the Lender and my Buyers spent money on an inspection ?"

     Since that has happened exactly once ....less than one per cent of the short sales we have closed....we explain that we don't believe that is a concern. We explain that when an agent calls us before writing the offer.   Still, this particular does not choose to follow our procedure and demands that our divorced Sellers counter or reject the offer.   Countered it is...and now you have wasted everyone's time...disturbed already distressed Sellers to satisfy I am not sure what....What I am sure of is that Addendum PRN will always be a part of our short sale listings...Buyers and Agents can like it or leave it...it does not matter to us or the Sellers who have put their trust in us to get the transaction closed.

 Ego T shirt   Buyers don't rule in a short sale....Agents who advise their clients not to "play by the rules" that the Seller or in some cases Lender, has established ...aren't working for the Buyer. The Agent's ego precedes the happily ever after that will never happen with closing on the property....unfortunately.

       If you or anyone you know in southeastern Wisconsin is unable to pay their mortgage for reasons of hardship...Call the Hansons, we are honored to be of service.

     

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Comment balloon 12 commentsSally K. & David L. Hanson • February 24 2016 04:14AM

Comments

Interesting concept, I need to check with my attorney. 

Posted by Peter Mohylsky, Your Bucket List Broker in Destin, Fl.. (BETTER HOMES AND GARDENS REAL ESTATE) almost 2 years ago

Hi Sally.  Such a smart addendum to protect the seller's interest.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) almost 2 years ago

Good morning Sally K. & David L. Hanson ,

This is an excellent addendum drafted to protect the seller. Interesting an agent would advise their buyers not to sign it. Love the shirt slogan!!

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) almost 2 years ago

Good morning Sally and David,

I actually like it; it would make everything go so much smoother.

Make yourselves an astonishing day.

Posted by Raymond E. Camp, Licensed Real Estate Salesperson Greater Rochester (Howard Hanna Real Estate Services) almost 2 years ago

I insist on the same thing with my short sales. The seller clearly is harmed by leaving the inspection to the end but so is the buyer who is missing other houses which might be THE house while waiting for this one from a short sale. Keep insisting. You are right 

Posted by Lise Howe, Assoc. Broker and Attorney Licensed in DC, MD, VA, (Keller Williams Capital Properties) almost 2 years ago

Interesting. And, for this reason, so many Realtors who don't know this niche...shouldn't be doing them!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) almost 2 years ago

Seems like a very wise addendum.....oh how those egos get in the way of business deals.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) almost 2 years ago

Very interesting protection plan the "PRN Addendum", makes sense.

Posted by Bob Ratliff, "Sold on Bob" (Canyon Vista Realty) almost 2 years ago

That is a good way to protect your sellers.  It sounds like the buyer's agent may not be that experienced with short sales.

Posted by Women of Westchester Working Together, Women helping Women get ahead (Women of Westchester Working Together) almost 2 years ago

Thanks for sharing some of your successful short sale practices.

Have a great day and an outstanding week!

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) almost 2 years ago

Hi Sally and David.  I would advise my buyers to agree to this addendum once I've had the chance to review some of the details of the short sale listing as well as the sellers.  There are some of these listings that have no chance of being approved by the lenders.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 2 years ago

Hmmmm...

Yes I think it is in the best interest of the seller, and maybe even the buyer if they are squeemish about certain deficiencies.

However, in Florida many things can happen between time of contract and the final closing on a short sale.  I currently have a short sale where we are in the 7th month of waiting for a response from the bank...and yes the seller has an attorney trying to expedite things.

The electric is off and we have hot humid weather...I am thinking that the property may have mold by now.  So, whats the recourse if the roof starts leaking and mold sets in?

If the buyer has waived the inspection up front what is their protection months down the road when the condition of the property changes?

Eve

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) almost 2 years ago

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