My first sales job out of College taught me a lot about the cliché’s “cut your losses early” and “stop the bleeding”. I even learned about “a bird in the hand is worth two in the bush”. The wisdom gleaned about these sayings came out of three words, many times spoken at elevated volume levels to a soon to be ex-salesperson: “GET A BOX!”
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“Get a Box” was code for, you are fired. Right now, not in two weeks, NOW. Get a container that can fit your personal belongings, pack them up and leave the premises.
In a sales position, the salespeople are the face of the company. Believe me; a company doesn’t want someone who is dragging through their final two weeks of employ to be their face. The salespeople generally aren’t good publicity at that point. This act is one of cutting losses early, it may hurt to be without the manpower, however the damage that they are inflicting stops, and it stops right then. The “Bird in the hand” reference means the company knows what they have in the present moment, and aren’t gambling on the outcome of this salespersons performance over their final two weeks.
The term “Short Sale” really is referring to a “Get a box” situation too, only in a short sale, the Seller’s lender is the frustrated boss, and the non performing loan is the departing salesperson.
The term Short Sale comes from the act of the current lien holder releasing the lien which is attached to the property for less than (or short of) the existing indebtedness. This means Sellers who are “upside down”, owing more than their homes are worth, now have a way to sell their property to a new owner with out having to pay off the entire amount owed.
Short sales can be a big help to Sellers who are trying to avoid having the scar of a foreclosure on their credit records. Most short sales occur when the existing loan is in default, and really, that default creates the motivation for the lender to “fire” that loan.
While Sellers receive some relief in a short sale, it is really the new Buyers who stand to gain the most. A seller is going to walk away from the transaction netting $0.00 whether the sales price is at 95% of the existing loan or 50% of the existing loan, so they aren’t as vested during the negotiations as the Buyer is. The Buyer cares A LOT; it makes a huge difference to the Buyers immediate equity position in the property if she is at 50% vs. 95%.
Our real estate team uses an algorithm to identify potential short sales. Most of these are not pre-negotiated, and you will receive the leads including their current asking prices. Ignore these prices. You will pay much less than what they may be currently marketed at. Your task is to identify geographic areas that may be of interest to you, and when you see a property come across that meets your criteria, contact us and we will help you through the determining logic to reveal what you could actually buy the property for. Our team is ready to help you identify good leads, understand values and instant equity potential, and take you through the steps necessary to get it under contract and close on the property.
“Get a Box”, also meant, “There is now a job opening. Opportunity awaits someone”. The question is, will you take advantage of these Short Sale Opportunities?
Kevin Bown 512-658-2419
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