Jennifer and I are experienced short sale agents/Realtors in Santa Clarita.  We provide our clients with a comprehensive plan whether they are buying a short sale or selling a home via short sale to avoid foreclosure. Our thorough, detailed Comparative Market Analysis of a home's value will help you determine the purchase price your willing to pay or sell your home for. We will also provide you with the professional guidance necessary to take you comfortably and smoothly through the process to close of escrow.

Buyers have more control over the home buying today because; they can choose what they want to see with access to property listings online. However, in most cases what they see is not what they get. I get calls daily from buyers excited about listings that are neither actually listed nor still available taking "back up offers only" when the listing shows as "active" in their searches even though it is really in escrow.  

The purpose of this blog is to let buyers in every price range know that short sales will make up a large portion of the homes that are available to purchase.  In Santa Clarita as of today's date,  48% of the "active" listings are short sales and that isn't going to change anytime soon. In fact, I fully expect that the type of market we have today will be this way for awhile. Meaning, there will be less homes available, 14% of the market are REO's, and the remaining 38% of the market are regular sellers. According to Credit Suisse 50% of the homes in California are 50% upside down. (Owe more than their home is worth). Most professionals expect it to stay this way awhile. So what does that mean to buyers of short sales? In short, uncertainty and likely frustration unless you know and are prepared for the following;

First, selecting a skilled buyer's agent who will research whether or not the listing agent has specific training on processing short sales, are negotiating their own transactions and whether or not they have successfully closed short sale transactions.  

As thorough short sale agent will have "motivated sellers" provide complete disclosures so repair costs, cash contributions to 2^nd lien holders and mortgage insurance expectations can be addressed.  A good real estate agent ALWAYS caution their short sellers that they MUST participate in the process if they truly want to avoid foreclosure. A great buyer's agent will work closely with the listing agent to address any curve balls thrown by the negotiator.

A trained Realtor will know to get a "complete package" of the seller's financials. Their training will be the frame work for them to review the financials and ensure this is a verifiable financial hardship that's qualified to be listed as a short sale. Without a "complete financial package" review it is impossible to determine if the homeowner may be eligible for any of Making Homes Affordable HAMP, HARP, second lien modification program (2MP) and HAFA programs. Struggling homeowners follow this link to see if your eligible for relief from the government programs

A good buyer's agent will communicate with the listing agent on pricing. If the property is listed to low the buyer's agent should have a conversation with the listing agent about how Fair Market Value was determined.  The good listing agent's will demonstrate their skill level by properly pricing the property. A skilled buyer's agent will interview the listing agent to see if the seller/homeowner has applied for, been denied or failed in a permanent modification and if they are eligible to proceed with a short sale.  We have all heard the horror stories, buyer's waited for 6 months seller took a loan modification or filed BK at the last minute killing the deal. It's very frustrating to THINK you have a chance at getting your dream home only to find out that "the great deal" you thought you were getting isn't happen because the seller's were hiding their true motivations.

So why would any buyer put up with long waits, uncertainty and frustration? Simply put, because they want a house! The point is this; when selecting a buyer's agent the buyer's should access the agent's overall qualifications. The real questions is, does the buyer's agent have the training and skill set to ask pertinent questions in an attempt to really determine what is happening with the seller's and advise their buyer of the viability of this transaction. The good buyer's agent will set expectations of what to expect should the buyer proceed with an offer.