In order to succeed in short sale work, it requires good negotiating skills and creativity. Goldie Sommer must convince the lender that her client and the bank have a mutual interest in selling this property in short sale. There have been times when she has been able to get relocation or concession fees to her clients, paid by the bank.
Her largest short sale involved a mansion where the outstanding loan balance was $5.5 Million and the sellers were losing the home due to illness and reduction of income. Goldie Sommer successfully negotiated a sales price of $1.25 Million and the lender waived the deficiency balance for the sellers.
Goldie Sommer has been helping her clients buy and sell homes in New Jersey for several decades.
When you buy commercial real estate, you are usually dealing with investors who are likely to be experienced negotiators. They probably also have their sets of parameters that make deals worthy. If a deal isn’t of interest to them, they can pass or wait patiently until the conditions of the deal change and you reduce the price. This is now how things work with buying and selling houses. Instead of very experienced negotiators, you will be typically dealing with homeowners motivated to sell their homes quickly. If a homeowner has plenty of time, he or she may wait for a full-price offer. However, you will also meet people that want to sell in a hurry, which will usually lead to a discount in price. The lesson here is also that you never want to be in a position when you need to sell a house in a hurry. Also, if you are selling a home, do your best to sell it to the people that are buying it to live in it. You want to find people that are looking for a home for themselves and really like your property because this is the scenario in which buyers will most likely be willing to pay the full asking price.
Finally, when you are selling a single-family home to a buyer, the buyer will probably be able to get a loan for nearly full purchase price. FHA loans can fund up to 96 1/2 % of the purchase price in today’s market.
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This is not how things work with commercial real estate. Because of the increased risks, banks usually finance up to sixty or seventy percent of the asking price. They want to see buyers invest their own money. This means that a deal may fall through because the buyer is not able to get sufficient financing, which is something Goldie Sommer saw happen many times during her career.