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Planning to Buy Nashville Real Estate

Planning to buy a short sale, or bank owned property? here are some of the things your realtor will be faced with. 

CONSIDER THE STEPS NEEDED TO GET TO SETTLEMENT

PREPARING THE  OFFER.  Once an agent has shown buyers available homes, the agent sits with the buyer and writes an offer.  How long does that take?  You already have the lender's letter showing that the buyers are credit approved.  Agents, in consultation with the buyers write a contract offer based on:

  • A careful review the comps,
  • Knowledge of market value,
  • Buyers desire for the property,
  • Property condition relative to the list price.

HOW MUCH TIME IS EXPECTED FROM CONTRACT PREPARATION TO CLOSING?  Of course this varies depending on the contingencies involved and the buyers' real estate experience. 

CONTRACT OFFER PREPARATION
DAY 1

PRESENTING CONTRACT OFFER
DAY 2

NEGOTIATING CONTRACT OFFER*
DAY 3-6

HOME INSPECTIONS
DAY 7-12

CLOSING SCHEDULED
DAY 13

LOAN PROCESSING
DAY 13-27

SETTLE PURCHASE
DAY 28-30

*The number of offers received does not usually affect the above scenario.

 short sales take anywhere from 60 to 180 days or MORE.  Why?????

"Banks price these things to sell and when you have 10-20 offers on one property then you are going to have 9-19 buyers moving on to the next under priced property."

"The multiple offers confuse the asset managers and can create some major lag time with response."

WHY CAN'T BANKS WORK AS EFFICIENTLY AS REAL ESTATE AGENTS WITH THE SHORT SALE CONTRACTS?  Because Asset Managers do not usually have any real estate experience.  Asset Managers do not understand the Contract of Sale.  Asset Managers do not understand the relevance of the BPO to an actual contract offer.  The biggest barrier to a timely processed short sale contract is that many ASSET MANAGERS HAVE NO AUTHORITY to evaluate, negotiate and accept contracts.  Many banks review short sale contracts by committee. 

TIME IS NOT OF THE ESSENCE.  Whether or not a property sells during the short sale period, the Asset Manager will receive a pay check on pay day.  They also have health, vacation and retirement benefits not available to most real estate practitioners.  THEY DON'T CARE

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Published Friday, June 5, 2009 8:57 AM by larry Brewer

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