Kevin Kauffman and Fred Weaver of Tempe, AZ (near Phoenix) live in the middle of one of the nation’s most distressed markets. In 2009, they helped more than 150 individuals and families avoid foreclosure with a short sale. They are among the select few short sale agents in America who close more than 90% of the deals they take on.
Today Kevin and Fred led a presentation on Short Sale Offers and Contracts That Win. Here are some of the things we learned in the session:
- The real estate boom of the mid-2000s was followed by a precipitous drop in values in many regions of America.
- Today, in half of all US states, 30% or more of all real estate sales involve a foreclosed or foreclosure-threatened property.
- This “distressed property” phenomenon first grabbed the nation’s attention about two years ago.
- The dramatic market shift continues—though recently, the first signs of “light at the end of the tunnel” appeared.
- One reason for the recent positive shift has been the diligence and passion of short sale specialist real estate agents. These professionals reach out to homeowners in financial distress and help them avoid foreclosure through a short sale.
Their secret to their success:
- Attracting offers that banks accept the first time, and negotiating with the bank efficiently and effectively to close the deal.
- A high success rate closing short sales requires a great mindset—a determined, independent, and very well-informed agent and team.
- You must truly know the short sale process, and you must be familiar with the unique requirements of the different lenders you encounter.
- On the buyer side of short sales, you must prequalify the listings you show—by pre-screening the listing agent! You want to bring offers to agents who know the ropes and have proven track record of success—whenever possible.
- Present one and only one offer to the lender on a given property.
- Never take “no” for an answer!