Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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Phoenix Short Sale Negotiations

In a Phoenix Short Sale there are two distinct phases of negotiations.  

The first that everyone thinks of is the negotiation with the Sellers Lender to get the approval for a Short Sale with terms and conditions acceptable to the Seller.

The second, that does not get as much attention as it should, is the negotiation between the Buyer and the Seller to get from Offer to Contract.

In order to maintain our 100% list to sold to closed Short Sale track record at Haven Express, we have constantly fine tuned our "standard" Counter Offer for terms.

The Counter Offer is designed to determine whether or not the Buyer is truly committed to the purchase of the Short Sale, as an uncommitted Buyer could result in the property going to foreclosure.

It's essential that the Buyer demonstrate that they have "skin in the game".

Therefore, every one of the dozens of our Short Sales that have closed escrow or are currently under contract have the following terms (or a previous version) included as part of the contract.  While it takes six pages of "legalese" in contract, I'll give you the easy to read version here.

1. Buyer will open escrow within 2 business days of contract acceptance AND deposit $1,000 Earnest Money.

2. Earnest Money is non-refundable until one of two things occurs - either the Seller delivers the Agreement Notice to the Buyer or the Seller notifies the Buyer that their Lender will not approve the contract as written.

3. If the Sellers Lender does not approve the contract as written, the Earnest Money is refunded to the Buyer.

4. If the Sellers Lender does approve the contract as written, and the Seller delivers the Agreement Notice to the Buyer, the Buyer must pay for a home inspection from a 3rd party AZ licensed home inspector (and if a financed purchase they must pay for an appraisal) in order to be eligible to cancel and have their Earnest Money refunded.  That effectively stops the Buyers who wait for the Inspection period as a "free out" (I don't like the floor plan) dead in their tracks.  It means they have to genuinely pursue the transaction, as the home inspection and appraisal will cost about $700. So to get back their $1,000 Earnest Money they would need to go $700 out of pocket.  if they cancel without doing so, they forfeit their Earnest Money.

The Counter Offer also covers those pesky things that crop up later in the transaction - such as what if the Seller doesn't have the utilities on for the inspection period?  Buyer is authorized to turn on utilities at their expense.

And much more.

The end result is that when a Buyer for one of our Phoenix Short Sale listings enters into contract with our Phoenix Short Sale Seller, we know they are committed to the transaction, giving the Seller a high probability of a successful Short Sale and Avoiding Foreclosure.

The successful Short Sale results in a Short Sale Video Testimonial from our Short Sale Seller - like this one!

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Technology Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty
Phoenix Short Sale Negotiations
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