The situation or question may arise when we list the property and we do receive multiple offers. The seller asks us which one should I choose or which buyer is the best. I wanted to go over some the basics when it comes into considering these factors.
One thing that we do see quite frequently in this market is an all cash offer. From there it depends on what kind of buyer that all cash offer is. If this is an individual who is an investor and offering all cash, we don’t always see those to be the best offer for the property. The reason being is this, as soon as an offer is submitted on a short sale it’s going to take maybe 2 or 3 months in order for the bank to do their homework and approve the short sale and many times investors are not willing to wait that long in order to get their short sale approved. In fact, many times they will do is they will go out and write multiple offers on a lot of different properties and just see which one hits and they go and buy that one. So what we don’t want to have happen is you get an investor offer that’s all cash, we submit it to the bank, we work on it for 2 months getting approval and then the investors gone.
Many times what we will look for is what we called owner-occupied properties, meaning buyers who are looking to live in a home. When they are looking to live in the home they might have an emotional attachment to that property or it may have some specific features they are looking for. It may be in a certain school district that they’re interested or a certain community that they want to live in. And many times these buyers are more committed to the process of waiting a month or two in order to get the home they are willing to buy.
So when we weigh out investors versus owner-occupied, we usually like to deal with owner-occupied. From there it comes down to whether or not their cash or not or whether or not they have eligible financing and to see if they are also willing to pay the price that we think the bank is going to want. Many times what we’ll see is when we list a property for let’s say $200,000 and then we got a lot of low ball offers at a $150,000 and even if those are all cash, those are offers that we don’t think the bank is going to go ahead and accept.
So there’s a multitude of factors when it comes to helping you choose which offer should go into the bank and which one we feel is going to be most committed to the short sale process and most committed to buying your home. We weigh out all of those numerous factors and then from there hopefully we make the right choice. Because we have such a strong pre-screening process when it comes to working with buyers, this is why many times we do not have buyers fall out of our short sale transactions. Sometimes people here horror stories of short sales where they have lost 3 or 4 buyers, in my office it’s not typical. We try to choose the right buyer the first time so that were only dealing with the short sale one time.
So that’s just a little bit or a glimpse or a very brief review of some of the things that we look for when it comes to choosing which buyer is right. We will help you through this entire process and guide you through which ones we deal are the strongest and best buyers for your property cause again many times we are receiving multiple offers.
Thank You very much for listening to my presentation: Who Are The Best Buyers For Short Sales?