Wednesday, March 24, 2010

Short sales: Getting creative

It's no secret that short sales are a lot of work and the reason why many real estate agents don't bother with them.

However, for the ones that do, it's frequently a challenge to get a reasonable offer to start the process with the lender.

One Solution : Some agents are turning to technology, by marketing a short sale through an online auction so they can get the highest & best offer within 2 weeks or less. This approach leverages the auction process to drive the demand and price up while also providing an offer that can be easier to justify because it was determined in an competitive bid situation.

Here is a simple overview of the process...

  1. The property is marketed using an online auction platform (in coordination with the MLS) for as little as 1 week. It includes holding at least 1 open house preview, preferably 2. In the auction terms it MUST be clear that the high bid is subject to lenders approval. The online auction makes it simple for buyers and their agents to submit offers and it's all automated (No more juggling multiple offers and all the paperwork involved).

  2. When it ends, the high bid is written up as an offer and presented to the lender. In addition, the agent also explains to the lender how the property was marketed through an online auction, and they provide stats such as number of people who visited the property, number of bids, number of people bidding, etc.

  3. The short sale process is managed as normal, but the agent can also follow-up with the non-winning bidders and sell them other properties.
This is a very simple overview as there are a several other details that make an online auction successful.

If you are involved in short sales, you're welcome to come learn more about this progressive sales strategy. Real Estate Auction Webinar - Click Here

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