Short Sales – What’s Negotiable?

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The answer:  Everything!

Have you ever heard the saying “Everything’s for sale!”  This statement is usually used when people say “I’d never sell it” or something along those lines.  But truly, for the right price, EVERYTHING is for sale.

So you just love that new chair you bought?  You’d never sell it?  How about if someone offered you $100,000?  I’m not saying they would but that’s not the point.  Everything is for sale!  Just like Everything is Negotiable!

If you have two parties in any sort of contract and they both agree then you have a negotiation.  So in short sales, everything is negotiable.   Some deals may be easier to negotiate than others but eventually everything becomes a negotiation.

When you really sit and think about it, isn’t a short sale really sort of the same as bargaining at a garage sale?  I am going to make probably the first comparison in history utilizing a weed whacker and a piece of real estate….(If you don’t know what a weed whacker is, it’s one of those electronic or gas powered garden tools with a piece of string attached at the bottom and it spins at some ridiculously high rate of speed and makes mulch out of any weeds, dandelions, or people’s toes in its path)

YEAR PURCHASED AND PRICE PAID

Weed Whacker:  2005  – $100.00

House:  2004 – $525,000

CURRENT CONDITION & VALUE

Weed Whacker:  Good – $25.00

House:  Good – $315,000

LOSS IN VALUE

Weed Whacker:  75%

House:  40%

FOR SALE PRICE

Lawn Tool:  $25.00

Property:  $320,000

BUYERS OFFER

Weed Whacker:  $15.00

House:  $300,000

SELLERS COUNTER

Weed Whacker:  $20.00

House:  $310,000

FINAL NEGOTIATED PRICE

Weed Whacker:  $20.00

House:  $310,000

Now take a look at that example and you’ll understand a little about why short sales make sense for everyone involved.  Is it really all that  ridiculous to try and compare a weedwhacker at a garage sale and a short sale on a home?  Both were purchased a price you would never get today, both lost a lot of value, both were listed for sale at or about market value, both got offers from buyer’s looking for a deal, both were countered, and the sale was finally negotiated.

All it took was for a buyer & a seller to come to an agreement and the deal was consummated.

Remember this:  EVERYTHING CAN BE NEGOTIATED!

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Source by Sean Bonini