National Association of Exclusive Buyer Agents Educates Buyers on Short Sale Real Estate Transactions
New Survey from home buyer advocates advises awareness and good representation are keys to short sale transactions
AVONDALE, AZ December 20, 2010- Bargain hunting home buyers may turn to short sales, a real estate transaction where the property is sold for less than the balance owed, to buy their dream home. However, according to a new survey by the National Association of Exclusive Buyer Agents (NAEBA) buyers should be aware that short sales are rarely short or easy and in many cases can cost consumers time and money. The survey sent to members of NAEBA examined known issues that could complicate or kill a transaction and ranked those most critical for consumers to know before entering a short sale deal.
The survey revealed that the majority of exclusive buyer agents (75%) believe that it is important that buyers know that there are many risks in a short sale transaction including rule and bank policy changes during the process that can kill the transaction or restart the timeline.
“Exclusive buyer agents are watching the bottom line for consumers who are trying to buy short sales. Many consumers who are seeking a home buying bargain enter the short sale process without enough information about what can go wrong, and what that will cost them in both time and money,” says Mike Crowley, 2011 President of NAEBA.
Known issues that were ranked as important to know included:
- Short sales can take 4 to 6 months or longer and 80% of buyer agents warn that even after the seller has accepted your offer, the lender can reject your offer in favor of a higher offer. Buyers may spend money on home inspectors and attorneys only to end up without a house.
- 83% of respondents believe it is important for consumers to know home inspections conducted prior to third party approval may be a waste of money.
- The majority of exclusive buyer agents (80%) warn that sellers may agree to any offer even if there is little chance that the bank will approve it, and 68% warn that during negotiations for approval the lender and seller may come to terms on a loan modification killing your transaction.
The survey results challenge many of the myths that surround the short sale process.
NAEBA members work exclusively with home buyers and want to ensure that buyers are fully informed before every home buying transaction and that includes understanding that short sale negotiation companies cannot guarantee success. Knowledge and the right representation are critical in short sales but even then it is important to fully understand the risks before you leap.
About the Survey
NAEBA conducted this survey from November 11 to November 17, 2010. The online survey was open to all NAEBA members. Additional highlights of the survey can be found at http://naeba.org/ShortSaleSurveyHighlights.pdf.
Visit the NAEBA website at http://naeba.org for more information on home buying or to find a buyers agent in your area.
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Kimberly Kahl, CAE, Executive Director
National Association of Exclusive Buyer Agents
Phone: 888-623-2299
Email: kkahl@naeba.info
About NAEBA
The National Association of Exclusive Buyer Agents (NAEBA) (http://naeba.org) is an organization of companies dedicated to representing only buyers of real estate. NAEBA member brokerages do not list homes for sale and never represent sellers. This restriction to one side of the real estate transaction avoids conflicts and ensures that the interest of the home buyer is protected at all times from house-hunting and negotiation, to inspection, financing and closing.
NAEBA is pioneering a nationwide effort to give today’s home-buying consumers the level of service they deserve and are increasingly demanding. NAEBA members firmly believe that home buyers have the same full and equal representation rights as sellers in any real estate transaction. NAEBA, in existence since 1995, is comprised of Exclusive Buyer Agencies in most areas of the United States, and in some international markets.
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