father''s day

How to get out of

Short Sell Hell!!

Nevada Title Company in Las Vegas reported 428 short-sale closings in October and 1,261 failed closings, about a 25 percent success rate.

LVRJ 11/22/09

Most short sales do not close. That’s a fact. It’s also the definition of what we in the business have come to know as “Short Sell Hell!” If you are selling real estate in Las Vegas now, you’re neck deep in it. Well, you don’t have to be… if you knew of an easier way to do short sales, one that dramatically increased your chances of closing and collecting a commission, would you consider it? What if it didn’t cost you anything to use it?

Read the information below,
or contact Broker Jay Rosen for details.

AN OLD SCHOOL ALTERNATIVE
If there was better way to short sell, that brought better buyers, higher chances of bank approval, less risk and fewer abusive events, would you use it? Would you be even more likely to try it if it was actually an “old school” idea? What if the escape from Short Sell Hell was the same process exclusively used by every American government entity, state and federal courts and most banks at the industrial/commercial level? One of my father’s favorite jokes goes like this…. “The Auctioneer is the second oldest profession in the world.”

THE BETTER WAY
The Rosen & Company on-line competitive bidding system turns Short Sell Hell into Short Sell Heck! What we do is not new, not even very innovative, except that it’s mutated from a time limited, local only and live event, to an extended, global, yet still real time, on-line event. It’s just another example of how our family has been defining and refining the auction method in America for almost a century, NON-STOP!! By applying the Rosen method to the generation of a short sale contract, we are simply bringing simplicity and common sense back to the whole process of selling a home.

The Rosen On-Line Auction System opens the market for Las Vegas real estate to buyers worldwide, making it easier, more trustworthy and more likely sell your listing for more. Face it, we’re not known as the most honest city in the USA. We have to deal with that. When out of town buyers participate in our on-line bidding, they know they are not being cheated of by collaboration between a buyer’s agent and a seller. Buying a home is daunting and difficult; an on-line Rosen auction is easy and comfortable!

INCREASE YOUR CHANCES WITH THE BANK
When your short sale package is finally dropped onto a negotiator’s desk, that person’s job is to ensure that the deal is representative of the market value and that the bank will not lose more money than it should if they take the offer. Appraisals, BPO’s and complicated secret formulas are all efforts by the negotiator to justify an estimate of what an auction sale actually provides; established market value! That’s why the United States and all 50 state governments mandate auction sales for liquidating everything from war surplus, to seized property. It’s easy, it’s safe and it’s perfectly accurate.

Let’s go back to real estate school for just a minute and answer this question. “What is any property worth?” Do you remember? Ok, all together now…. “IT’S WORTH WHAT SOMEONE WILL PAY FOR IT”. Very good, maybe a little simplistic, but certainly not wrong.

AUCTION VS. APPRAISAL
Dictionary.com defines ‘Market Value’ as: “the value of a business, property, etc., in terms of what it can be sold for on the open market.” It also defines the word ‘Appraisal’ as “an estimate of value”. An auction sale, where the property is exposed to the entire market for competitive bidding, isn’t an estimate, but rather is an actual, real-time expression of the value of a property.

The auction sale’s “expression” of value is a much better evaluating tool for a bank negotiator than an appraisal or BPO. In an auction, the property is available for sale on the open market, in a competitive bidding situation. The highest bidder directly represents market value, not someone else’s estimate of market value.

SHORT SALE & AUCTIONS
So you ask what this all means to a short sale? How does it get me out of Short Sell Hell? When you present your offer with its many contingencies, in its full unreliable glory to the bank negotiator, he/she has to then determine the value of the property without any reliable data provided by the sale process. All he has is a $40 BPO by an agent. Not much to make a decision on. If the purchase price had been generated by an open market competitive bidding process (Auction), the negotiator then has a valuable and reliable tool for justifying the sale and saying yes. The BPO, if even ordered, is merely an exercise of habit because it’s not as accurate as the auction’s results, making it also less valuable.
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Bureaucrats like bank negotiators like easy. When you use the Rosen On-Line System, make the negotiators job very easy. They like that. If you are doing short sales, you need to use the auction method to create our short sale offer and make it easier for the bank to say yes. We close more deals.

KEEPING THE BUYER “ON THE HOOK”
Easing the burden on the bank negotiator only fills in a small part of the quagmire that makes up Short Sell Hell. The worst of it by far is the unreliable buyer. As discussed earlier, the buyer knows very well when they enter into the purchase contract, it means nothing. There are so many ways to back out of a deal, and since they haven’t put down any EMD money yet, they don’t even have to go thru the minor hassle of getting it back if they decide to bail for any reason. The environment under this model is toxic to the deal from the beginning. No one has any confidence, no one has any dedication and no one is motivated until months down the road. It’s just not right!

Our system creates buyers who are vested in the deal and motivated to see it thru to closing. That’s because we eliminate the causes of mistrust, opportunities for deception and create a sense of empowerment and control that motivates the buyer. These causes and opportunities for deception that we eliminate are the traditional contingencies and the lack of deposit found on ‘regular’ short sales. It is sheer folly to make a long-term agreement, such as a short sale, and leave issues like inspections and financing for some unknown date down the road. Why we evolved that way, I will never know. What I do know is that we have found a better way!

In our competitive bidding system, all documentation such as the CIC resale packet, and even a home inspection is available for review BEFORE the end of the event. When the buyer places the high bid, they’ve already evaluated the property condition, the governing documents and everything else associated with the home. Though they are free to finance the property, they are already approved for the loan (subject to pre-lim and appraisal) and their contract will not have a financing contingency.

A MUCH BETTER WAY
Earlier in this essay, I asked that if you knew of an easier way to do short sales, one that dramatically increased your chances of closing and collecting a commission, what would you do? Well, I hope that you would take advantage of that better way! The Rosen Competitive Bidding System is a better way, A MUCH BETTER WAY.