My New Blog

Here you go...

Short Sale: Often referred to as a sale when the buyer is upside down…but what it really means is that the net proceeds (after commissions, escrow, etc) from the sale of the home are not sufficient to pay off the loan balance(s). The bank(s) must consent and approve these types of transactions. They can often take 90 days or more, depending on the bank. If you are the buyer, be prepared to be patient. Banks are not efficient participants in short sales. Some are worse than others and have well earned reputations as being very, very s-l-o-w.

Foreclosure/REO: A property owned by the bank and now being sold by the bank. It was obtained by the bank through foreclosure or a Deed in Lieu of foreclosure. Generally these types of sales require special addendums. Often the bank will require the buyer to engage in verbal counter offers and to sign the banks addendum paperwork before the bank/seller will sign or confirm anything in writing (a you go first approach). These deals often are structured “as-is”. See my last blog post for a discussion of “as-is”.

Standard Sale/No special conditions: Real estate the way it used to be sold. No bank consent or ownership. Just a standard sale. Make an offer, its accepted or rejected, and move forward. Yes, despite the media hype, there are still plenty of these types of sales. Those who bought before 2006 tend to have equity. In the MLS listing, look for the word “none” under “special conditions”. If so, you’ve got a standard sale.

Probate. This is a sale that is triggered by the death of the owner. Depending on if the deceased owner had a will and what that will said, it may require court approval. This is typically a relatively simple process. You submit an offer (just like on any other transaction) but acceptance may be conditioned on probate court approval. This can often be obtained rather quickly and painlessly…but there are always exceptions.

Relocation/Relo sale: This type of sale occurs when an employee has been relocated by his employer to a new area and the employer offers a relocation package or relocation benefits. The employer uses the services of a relocation company to facilitate the sale of the employee’s home. The relocation company may offer an incentive (equal to a small percentage of the purchase price) if the employee arranges for the sale of the property (hires the real estate agent, obtains an offer) and sells it within a certain, limited time frame. If the sale does not occur during this incentive time frame, the relocation company handles the sale. This type of sale may require you to sign additional paperwork, but otherwise it will seem like a standard sale.

Want info on another type of sale? Just drop an email, call or post a comment.

Happy home shopping.

-m