It all looked great. We had a full price offer on this $700,000 short sale listing on the Eastside. There was only one lien holder, and they approved the price….but there was a catch (a big one). The investor required that the seller contribute half of the remaining deficiency – $60,000 that the seller did not have. Now what?
Faced with this new criteria from the lender, we remarketed the property at $700,000 and specified in the agent notes that the buyer was required to bring an additional $60,000 cash contribution to the lien holder. Ten days later we had a buyer. 45 days later the sale closed.
When presented with problems – particularly with high-end short sales – brokers need to be creative. With this particular solution it was critical that we were extremely transparent with all the parties involved. We needed to make sure the buyer’s bank would allow the purchase to be financed in this manner. The seller’s bank also had to agree that the buyer could contribute on behalf of the seller. Finally the listing had to fully outline the terms of the purchase. While the process was time consuming, the outcome was worth it.
Many brokers who work in the high-end prefer not to invest the time it takes to negotiate short sales. We have closed over 900 short sales, including many priced from $700,000 to $2 million. Our goal is to help brokers like you provide the best possible service to their clients in the short sale process. My name is Richard Eastern, and I’m a Windermere real estate broker and a partner in Washington Property Solutions, a short sale solution provider. We pay a 30% referral fee. If I can be of any help, please give me a call at (206) 612-5541.