Road map to Distressed Property Sales Success
As all Realtors we’ve all noticed, distressed properties are a huge part of today’s market, and they’re not going anywhere soon. Whether or not you’ve been fortunate enough to land an REO account or find success in short sales, you WILL deal with distressed homes and sooner than later. I’ve put together some tips to aid you in the distressed sale process. Becoming your customer’s ultimate resource is easier than you may think.
Know your customer
In speaking with REO and short sale listing agents as well as having listed both myself, one things for sure, it’s important to know your customer. Not everyone is a fit for a distressed home. When dealing with REO properties, it’s CRITICAL the buyer’s funds are available immediately for escrow purposes, and the balance to close available within the designated closing period in the contract. Banks do not like to give out extensions when not necessary. In regards to short sale buyers, the renter in need of a home right away with no where else to go may be better off not looking at short sales. Bottom line is this, ask questions, and understand your customer. Once you’ve armed yourself with a complete picture of who your customer is you can find where they fit in and manage their expectations accordingly.
Follow instructions
This is a big one, and easy to do. Asset managers will often kick back contracts and paperwork for missed initials signatures or dates. Review your paperwork prior to sending to your customer as well as the bank. Your fellow agents and customers will love you for all the time you save everyone involved. A great service I utilize daily is Docusign, where I can send over my documents electronically to buyers and sellers, with clear notations on where they can sign and date the forms. Your customers sign with a click of the mouse. Again, ask questions before doing this, some lenders accept these electronic signatures but not all.
Put it in Writing
REO agents are bombarded by phone calls. Is the home available? Are there other offers? What is the condition of the home? Limit your communications to email or text unless it is urgent, and always read Realtor remarks, and review attachments and showing instructions prior to calling with questions. Most of what you want to know is likely in the MLS. Already submitted your offer and want a status update? Again email is the best and most considerate way to inquire. The listing agent will appreciate your thoroughness and may even recommend your offer when asked.
Be Complete
This is especially crucial when dealing with short sales. When you meet your seller bring along a list of required documents, or send the list prior to your meeting. Days and even weeks can be lost with the best of intentions over a missing tax return or paycheck. When sending over your packet to the lender be sure it is complete. Again, this not only saves you time; the asset manager will appreciate your preparation and be able to provide you with better information, sooner. Once your sellers BPO and or appraisal are ordered, it’s helpful to meet the agent or appraiser at the home, provide them with comps and point out any issues not immediately recognizable.
The distressed sale process is always evolving. Follow these tips and stay abreast of the latest industry changes and you’ll chart a course to short sale and REO success!
