"My home had been listed with another agent for about four months and was not selling, then I was referred to Olivia Edwards and Mary Murphy. I met with them and immediately felt that I was in professional and caring hands. During a difficult and long short sale process they kept me informed - I always knew what was happening. They gave me good advice during the listing period and brought in four offers. They continued to work with my bank until one of the offers was accepted. Their expertise and tenacity was commendable and I would recommend them highly." Steve W. Burlingame, CA

Buying a short sale can be a great way to get a good deal on a property, but it can also be a long frustrating process. 

What is a Short Sale?

A short sale simply means that the seller’s lender is accepting a discounted payoff on the existing mortgage. In other words the seller owes more than the market value of the home is worth.

Market Value Right Now, But......

In many cases the short sale property is price at or below market value. Making an offer on a short sale property is similar to making an offer on any property. You will, however, expect to wait anywhere from 2 to 6 months to close escrow on a short sale. So the price you offered a few months ago may not be the market value when the lender finally gives loan approval.  Many buyers don’t have the patience, or the stomach for the wait! Short sales are sometimes listed low for a quick sale but the lender does not have to accept the offer price. To get an offer accepted your offer will need to be priced near market value.

Use A Short Sale Professional

Your real estate professional will research how much is owned against the property and the number of loans. Many lenders can be difficult to work with, so choose an agent who is experienced in working with short sales and who knows who these lenders are and can advise you of the difficulties. Agents with the CDPE designation (Certified Distressed Property Expert) have the knowledge and expertise to guide you through a short sale purchase.

Why You Need a Short Sale Professional

Some agents advertise a short sale property but have never closed escrow on one. Your agent cannot talk to the bank and is relying on the listing agent’s experience and expertise. Your buyer’s agent will insist on interviewing the listing agent to find out if they have the experience necessary to submit the short sale package to the lender and how to negotiate. A good buyer’s agent will discourage you from making an offer on a short sale property listed by an inexperienced agent because they know the probability of closing escrow is remote.

You Can be Outbid

Although REALTORS are required by the REALTOR Code of Ethics to treat everybody fairly, not every agent is a REALTOR. This means the short sale listing agent may decide to submit only the first offer to the bank and withhold all other offers. Withholding other offers could be considered to be a violation of the fiduciary relationship formed between the listing agent and the seller. The seller is entitled to receive the highest and best price. Realize that even if your offer is submitted to the bank, as time marches by while waiting for short sale approval, another buyer could outbid you.

Bottom line – make sure you use a CDPE - the best agent representing you on a short sale. Mary Murphy and Olivia Edwards have the expertise to represent you as a short sale buyer.  Call us at 650.773.4999 or check out our short sale website by clicking SHORT SALE