SHORT SALE FLIPS & REALTOR/SELLER OBJECTIONS

[Tim Silvers]

I was recently told by a realtor that she could not refer deals to me because the seller felt that my lower offer would result in a higher deficiency and the resulting proportionate increase on a promissory note to the seller. I'm not concerned with respect to a deficiency resulting in a 1099-C, as a seller is protected against either via the Mortgage Debt Relief Act (owner-occ) or via insolvency (non-owner occ), although educating and convincing a misinformed lay person or realtor can be quite a challenge on the tax forgiveness issue as well.

Another frequent objection from sellers and agents alike is that because my offer is so low, it will create an unecessary delay when they're of the belief the bank will most likely deny a "lowball" investor offer in the end - and all those weeks or months in which an offer at or close to market value could've been accepted were forfeited in vain.

What are some of the techniques for overcoming these objections that actually have worked in the real world and not just theory?

[James Ward]

Tim,

Be prepared to talk to lots of Realtors. You will find more that do not want to work with you, than those that will work with you.

A great way to make sure everyone is on the same page, is to use a form that states all actions in the Short Sale and who will perform those actions. Have the party that is responsible sign for each action. So, if questions arise later on, you will have documented proof that all items were discussed.

Remember most people that work on commissions, can figure their "profits" quicker than you can say "go." Those same people also look at the fact that if they do not get that $ amount, someone is to blame. (That is why so many investors have been told that they cost that person commission, by buying low.)