How to Save the Sale
Feb 2, 2010
Sooner or later every short sale investor encounters a sale in danger of dying. Fortunately, with a few simple steps it's possible to dramatically reduce the risk of spoiling a sale.
1. Get Smart. Prequalify and prepare from first contact. Everyone has an "A" list and a "B" list when it comes to prospective buyers but it's still necessary to put things into proper perspective before spending a lot of time and effort on dead-ends. Remember, the internet helps to eliminate and reject prospects through the use of well placed questions and comments. For example, asking a simple question such as "Is there another home you wished you had bought?" can explain a lot; price range, comfort zone and readiness just for starters.
2. Value-Driven. Tough economic times have led most buyers to become more price conscious than ever; it's no longer enough to simply show a few over-priced homes to prep for an attractive in-house alternative...instead, be prepared to demonstrate real value with low risk. Buyers want to know they won't lose money in the long run by buying a given house or property.
3. Don't Shut Doors on any Deal. Some buyers are just the opposite - they have money and when presented with the right opportunity - are willing to go substantially above and beyond their traditional budget. Don't automatically exclude higher priced properties for those that have the means to make ends meet at a larger than life level. In this situation, recognize the price is not the prime motivator but rather the "right" property. Determine what constitutes a desirable deal then make it happen.
4. Time Right. Timing is everything but it takes time to learn how to distinguish valid help from harassment when working with prospective clients. Too soon and you can quickly cool even the hottest prospect...too long of a delay and you risk having others step in to fill your shoes.
5. Preferred Status. Everyone likes to feel special and as a short sale professional it is your duty to given individualized attention to every prospect....of course, some clients are just a bit more special than others especially when it comes to sealing the deal. Find a few ways to express that little extra something when working with your "A" list clients; meet at a local coffee shop then foot the bill (don't worry - it's a legitimate write-off) or schedule exclusive "preview" showings to the most promising prospective buyers before the big announcement. Remember, it's the thought that counts not necessarily the size of the status symbol.
6. Teach sellers to think like buyers and vice versa. Yes, it's easier said than done but it's all in the wording. By teaching sellers to act like buyers and buyers to act like sellers you assure they will present and demand more reasonable offers. Think of it as a small investment that pays big dividends at closing time.
7. Have a contingency plan in place. Every good investor identifies the "out" long before buying into the given investment - it's no different with short sales.
Know when and how you plan to exit the property then have a contingency in place should something go amiss. It's one additional layer of protection that allows short sale investors to sleep easy by knowing they have plenty of outlets for every property.
See ya soon,