San Diego, November 15, 2009
Not all buyers are suited for a short sale. This was one of the messages delivered at "Short Sales from the Buyer's Perspective" during the 2009 REALTORS® Conference & Expo today.
According to the latest Realtors® Confidence Index, one out of 10 recent buyers purchased a home through a short sale. The survey also showed that Realtors® are concerned about the hurdles buyers face in short sales.
"As short sales become more commonplace, both buyers and sellers need the help of seasoned, experienced professionals to help them navigate the complexities of a short sale transaction," said National Association of Realtors® President Charles McMillan. "As the first, best source for real estate information, Realtors® provide valuable insights and experience that can help buyers realize their homeownership goals, whether through a short sale or other means."
During the session, Realtor® Lynn Madison, who co-authored NAR's new Short Sales and Foreclosure Resource (SFR) Certification Program, detailed the primary reasons that short sales fail, including an incomplete short sale package, an offer that is too low, and inaccurate appraisals. According to Madison, buyers who are good candidates for short sales are very patient - it can take some lenders four months or longer to approve a short sale - have their financing in order, and don't have any contingencies in their purchase offer.
"Short sale buyers need to have the time to be able to wait for the lender's approval; some lenders get several hundred contacts every day," said Madison. "Buyers must also be willing to make an offer that has a reasonable chance of closing and take guidance from their agent. If the offered price is too low, there is a good chance the lender won't approve the contract."
To help Realtors® address the evolving short sales market, NAR launched the SFR Certification Program earlier this year. Offered by the Real Estate Buyer's Agent Council of NAR, the program includes training on how to manage short-sale, foreclosure, and real-estate owned transactions, and provides resources to help Realtors® stay current on national and state-specific information. More than 250 Realtors® have earned the SFR certification since the program was first offered in September. For more information, visit www.realtorsfr.org.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.