Relocate to Wisconsin : Short Sale Tale - Part 9- So You want to Write an Offer on a Short Sale

Whether you are a buyer or a realtor...you have decided to look at Short Sale listings...you have the money and the time. Here are some guidelines that you should look at, if they don't meet your home shopping criteria, a short sale may not be for you.

• There are no home sale contingencies with a short sale offer; if you have a house to sell, get your bridge financing in order before you start shopping.
• If you are looking at a  home listed by a realtor with short sale experience, the home is priced to sell, not to sit.  The "let's make a deal price" is most probably the price it is listed at or very close to it.
• Do your homework....Is the home "priced to sell"  ?  Ask your realtor to do a market analysis so you can judge whether or not there is value in the way the home is priced.
• Have your pre-approval or pre-qualification letter ready to include with the offer. No saavy short sale listing agent will take the transaction to the lender without one.
• Be prepared to wait...calling the listing agent every day will not make the process go more quickly. They have an interest in closing the transaction as well. Lenders are overwhelmed with short sale and foreclosures and patience is a virtue.
• While the seller may have accepted your offer, they cannot speak for the lender or other lien holders and that part of the transaction is done by the listing agent who is also the negotiator. Your agent has no part in getting the offer accepted.
• Be prepared not to have anything fixed as the result of an inspection. An inspection is always a good idea so you know where you are in terms of possible repairs...if the seller can't pay the mortage, he isn't paying for repairs, testing, etc.
• If the offer you wrote is your absolute "top" a short sale may not be for you...while the seller may have accepted the offer, the lender could counter for more money.

   Short sales can be a tremendous value....be kind....someone is losing their home and it may be thru no fault of their own....illness, unemployment, death and divorce are not planned events in anyone's lifetime....be kind.