Why do some Charlotte NC Short Sales not close? I have a property currently listed for short sale in Matthews, NC a suburb of Charlotte. It is a great property for a short sale; fabulous location, doesn't need much work and it is priced rather competitively. After only 2 months on the market the property went into multiple offers. I could tell that both buyer agents working the offers were inexperienced with Charlotte NC short sales. How did I know this? In spite of the fact that I provided very specific offer instructions the offers were incomplete, the agents used the incorrect forms and insisted I do things their way (and that was just for starters).
If you are a buyer or a buyer's agent interested in buying a Charlotte, NC short sale you need to educate yourself about the process. I am finding that buyer's agents do a poor job setting the appropriate expectation with their buyers and buyers do not do their due diligence to prepare for the short sale journey. What are some of the things you need to know to make sure that if you decide to buy a short sale it will close?
- The listing agent has no control over the bank or how long it will take for them to approve a short sale. All banks are different, I can give you a general timeframe but can guarantee nothing. Putting an expiration date on your offer and threatening to pull it if you don't get an approval by that date will not force the banks hand to speed up the process. However it does tell me that you or your buyer may be unrealistic on the timeframes involved, or your buyer needs to move quickly and a short sale might not be the best solution for them. Either way it gives me the impression that you are not committed to the process and are likely to walk.
- Please submit a complete offer package. What does that mean? An offer on the correct offer to purchase form, all addendums, loan letter or proof of funds and a copy of the earnest money check. Earnest money check? Yes, earnest money check. You can cancel your offer at any time during the process up until the bank approves your offer and get this back. The fact that you do not realize this or are not willing to put some skin in the game, again tells me you are not committed to this process and are likely to bolt.
- The offer must be accompanied by a loan approval letter (assets, income and employment verified) or proof of funds - No exceptions. I will not allow my seller to sign off on your offer without one, nor will I submit your offer to the bank without one. No you can't wait until you get approval from the bank to then submit one, no, no please do yourself a favor and don't ask.
- Submit the short sale addendum with your offer, standard form 2A14-T. Our state association has done a fabulous job in outlining the short sale process in this addendum. Just filling it out and reading it to your client should clarify many of the questions I get asked by many buyer's agents. I received an offer on a short sale listing of mine one time without it. I politely demanded that the buyer agent review the addendum with their client and get a signed copy over to me and that the offer would not be considered without it. After the agent reviewed it with their client, the client balked and pulled their offer.
I don't claim to know everything about short sales because as soon as I do, something will change guaranteed. But I am knowledgeable, professional and make sure that with each transaction I do my own due diligence with the seller as well because if I don't do this on the front end, there is a highly likely possibility that I too will have some of my Charlotte, NC short sales not close. There are many more pieces to the short sale puzzle and putting those pieces together and getting to the closing table requires that the agents on both sides of the transaction do their homework and educate their clients. When we all work together and do our jobs well, it makes it a smoother process for everyone.
This article was written by: Jennifer Manchester. If you want to learn more about Staging your Charlotte, NC home to sell contact Jennifer Manchester at www.JenniferManchester.com and make an appointment to give your home a competitive edge and use the ultimate home seller's marketing tool to beat out your competition and get your home sold faster.
If you would like to search homes for sale in Charlotte, NC or search homes for sale in Matthews, NC or search homes for sale in Mint Hill, NC and surrounding areas, you can see for yourself what is available. If you would like to meet with Jennifer Manchester to discuss buying or selling your home in the greater Charlotte, Matthews, Mint Hill area visit her at www.JenniferManchester.com to schedule an appointment today!