I for one am ready for a short sale revolution! First of all when a lien holder sends my customer a letter telling them the benefits of a short sale as opposed to a foreclosure and how they should put their house up for sale what skin do they have in the game? What commitment have they made at this point? Let me think, none?

Now what they, do is tell us to list the house and let them know when we have an offer. Now there are folks who play the game send in bogus offers to generate the BPO or appraisal. Is that what level of professionalism we as licensed professionals should be reduced to?

I say if the Banks suggest the "Short Sale" then once the house is listed they should send out an appraiser and get on the same page with the seller and listing agent. They should then disclose to the listing agent what it is as opposed to it being Top Secret as some lien holders seem to feel it is. Tadah we are on the same page. They should then assign the file to the same person until the BITTER END!

 

Instead we blindly list the house, spending our money, not knowing where then banks brain is on this, price wise, or if the investor will even be on board. We pull the lever and hope for 3 of a kind. We sell the same house 3 or 4 times due to loosing buyers for (1) commission. Something is wrong with this picture.

That, or on top of that we pay a percentage of our commission to a 3rd party to handle it so we don't have to deal with it. Why do we do that? Because the process is so convoluted. The Banks could not even deliver a written policy to anyone that would be good for more than 60 days.

 I know I will be bombarded from all the 3rd party short sale negotiators on this post. Nothing against you , it's not my point! I realize that many of you are a great help to agents everywhere and some of you have taught me a thing or two!

My post is directed to agents. Why? Because the banks operate in madness many agents give away more commissions to get the job done. They are so bogged down on the phone retelling their customers life story to someone that doesn't really care, instead of out selling real estate. We should not have to hire out and pay from our commissions what we have spent a lifetime building (a real estate career) because the powers that be don't know what day it is.

Unfortunately many good agents in our area have got involved in the more lucrative simultaneous closings where the 3rd party investor negotiator becomes the trustee and the listing agent lists for them and then finds an end buyer that the lien holder never knows about it. The agent gets double commission on this and both deals close at the same time. The concern is that NAR says this is wrong on so many levels. The picture below is from Fannie Mae. The seller even cluelessly signs something that says the house will not be sold in the next 30 days.

Why is all this happening? There is no clear process. The NAR has been slow to rule across the board, all the while the FEDS are investigating Fraud on every level. Meanwhile as Realtors we are working hard for our customers to get transactions closed and keep up with the ever changing rules. Why can't we as an organization call on the industry to streamline the process that THE BANKS so eloquently encourage our customers to do! No worry we'll list the house that we're not sure is "For Sale"

Why do we dance to their song. Spend our money, energy and frustration? The worst is when the give out our phone numbers when it's done to bill collectors because our name was on the file. Anyone have that happen yet? I just had to throw that in there.

 For the record in the last 12 months I have been able to close 16 short sales on my own besides my normal resale inventory. Not very much compared to many of you I know, but enough to have a taste up front and personal. I have been on the other end with buyers more times that I care to. I am happy to say that more and more buyers are looking for houses that are "For Sale".

Bottom line something has got to change!

It saddens me as a successful full time real estate professional to go on listing appointment's these days. I sit across from a seller that called for obvious reasons, to list their home and the conversation often goes the same way.

FIRST AGENT APPOINTMENT

Realtor: Mr Seller, based on the comparable sold properties, the active listings, what is currently under contract as it relates to your home including all the wonderful features, lot location and condition here is the range your home will sell in________.

Seller: Well I was hoping to get ________ because we we need _______ to buy our other house. Or we need it to pay off some debt so we can do _______________.

Realtor: I understand your position, however with the amount of inventory that consumers have to choose from along with the amount of information that is available to them buyers are very savvy. It's important to you as a seller to come out strong in every area to get the highest price. That means condition as well as your list price. Consumers will recognize a good opportunity when they see it. You could even have multiple buyers interested. What you don't want to do is chase the market down. What I mean is, if you start too high you will lose your best market time, your first months. By the time you lower the price to where you should have been in the first place, the market may have moved below that based on newer information. That being said a month after listing the home with no offers, having made another mortgage payment we may need to adjust the price to lower than suggested in the beginning and now you listing is a month old.

Seller: I hear you, but we really aren't talking that much and buyers will want to negotiate. They can always make an offer. Besides I need that room to come down. I can't sell below________.

Realtor: It's your home and your money we can list were you want to, you just need to understand the consequences of this strategy. If we do not get an offer on your home, which is the equivalent of someone being emotionally engaged in purchasing your home, we cannot even begin negotiations. An experienced agent will be a trusted counselor as well as a skilled negotiator. These are must have qualities in the Realtor you decide to hire. Meaning putting your best foot forward in the beginning, then have a skilled experienced agent that can handle the negotiations once an offer comes in equals selling your home. It's about more than, "Do you do open houses?" The only reason I am passionate about this is I have watched several home owners lose money over a strategy that will not work in this market. Unfortunately you will find an agent that will do whatever you tell them.

Seller: Thank you so much we are going to talk about it tonight and let you know tomorrow.

Realtor: (in mind) They have an agent already that gave them a warm fuzzy about a higher price!

DIDN'T SELL, SECOND LISTING AGENT APPOINTMENT

Seller: Thanks for coming over so fast. Our listing just expired yesterday and we really need to get our house sold fast. I don't know why we didn't call you in the first place.

Realtor: Well, tell me what happened? What went wrong?

Seller: Well, when we listed our house we started out just a little higher than maybe we should have. But we needed the money to buy our next house. Now it doesn't matter anymore. Prices have dropped so much on our house that it's not even an option. At this point we just need to get out. The payments too high and we are just going to rent.

Realtor: (in my mind) I'm thinking I just walked in and get the listing, The other agent did all the work and did not even get the chance for the right price. At the same time this was so unnecessary. OUT LOUD: Let me show you how we market a home, go over the comparable's and our service then we can get started.

What's the point? Is it better to be agent number 2? Well for the agent but never for the consumer or the market. The agent will have a motivated seller which equals a sellable home. At the same time if they would have listened to reason in the beginning they would have made more money and the comps would look better. Everyone has to remember that in most markets we are still declining. If you haven't noticed where are the 5 million foreclosures? They sure aren't "For Sale". It appears that the banks are trickling them into the market. Until all that inventory is liquidated and working Americans own them, the housing market will not be stabilized. That among other factors. It's not all doom and gloom but unrealistic sellers participate in driving down the market. Not sure what the answer is. I will be listing agent number 2, but I much prefer to be agent number 1. It's better for everyone. market time, sold price and seller net. It's a win win!

Kim Knapp

Team Knapp

904-334-7426

follow me http://twitter.com/jaxsecretagent

Unfortunately some of our bretheren do not know it but Real Estate is a team sport. Let me stop there.

I have to extend love and appreciation to all me friends in the business who are some of the best team mates I have ever know. Thank you!

Begin again. Have you ever had a transaction with an agent that was more interested in being some undefined hero that they lost the house for their buyer or mismanaged the negotiations for their seller? It's exhausting and tiresome. Those of us that pick up the slack like on any team go ahead and take one for the team and do what it takes to make it work. Why? As professionals we know real estate is about the people we serve and never about us.

What's the problem with this. One we enable folks to remain in this business (stay on the team) that are not qualified. Two, it's a disservice to the paying public.

We need each other. When we list a house we are asking the whole real estate population to work with us to get that listing sold. If we prove lazy, unresponsive, difficult, arrogant or otherwise someone they prefer not to deal with, your listing may find it's way to the bottom of the pile.

Consumers need to make sure they hire a well respected professional not a smooth talking hot shot. They may both get the job done in the end but it might cost them in ways they never planned.....

Crossing the Bridge to Paradise

It's True I do. No one piad me to say it I just do. I always tell people it's pleasantville minus the creepy part. Why? Everything is here and besides the necessary evil called work (LOL) you never have to leave. Crossing that bridge is like crossing the threshold of your front door. Done for the day! There are so many great restaurants, awesome entertainment, endless water sports, family fun opportunities, physical fitness choices for all ages, "A" rated schools, low crime rate, beautiful neighborhoods both old and new, watefront and golf course homes you name it, it's here. I feel so blessed to have stumbled upon it when we moved here.

The good thing is that folks here don't try to keep it a secret like they do in Amelia Island. There they don't want anyone else to find out about it. In Fleming Island folks are anxious to tell you about where they live and why you should check it out. We've made so many friends. Of course, don't laugh but I probably sold almost every one of our friends a house. It's true. I tease my husband that selling homes was our friend recruiting tool. Regardless if Northeast Florida is on your list you really owe it to yourself to look at Fleming Island. If you need a guide feel free to give me a call.

Make sure to check out iloveflemingisland.com

Kim Knapp

I think anything we can do to save time and money is worth looking at especially when it's top folks in our industry.

Thanks Sara so much for taking the time to Blog this.

Kim Knapp

This is my last short sale in the pipeline with Countrywide.I use last in the truest sense of the word. It's the only short sale I have left with THEM and it's the LAST one I will take with Them.

Their own people tell me their processes are ridiculous but hey what are you going to do?

I had an approved short sale, letter in hand. However by the time they got it to me we lost the buyer. Bet you never heard that before? We immediately got a new buyer for the same offer amount less them asking for closing costs. Hmm..... higher net to the investor. I'm feeling a slam dunk here.

What I really got was "go to jail, directly to jail, do not pass go, do not collect $6000." "no commission for you!"In other words "that's great we will start the file over and send it back to the front lines. Are you joking me? After 8 months of working on this, 500 phone calls, who knows how many showings, and they have the nerve to act like we are overpaid. I'm thinking I'm at .89 cents an hour. Now I'm at .00.

Same offer, bigger net, start over. Are you paid to think? Does the investor audit these people? Our money is bailing them out? In the meantime there are now 2 sales that will bring this one down further and will probably blow this price out of the water by the time "Stella gets her Grove Back".

Why do we stay in this game? For the customers we serve. It sure isn't to help the investors on these loans that constantly have their hands in our wallets and their heads in the sand. Well I'm tired of looking at their rear ends. They need to be accountable. In the meantime they are bringing values down with how slow they are.

I had one home go down $70,000 over the course of all the offers before the bank finally approved. They lost $70,000 because the process is not streamlined, and people are not paid to think. Oh did I mention that was Countrywide and it took a Negotiators Boss to step in to finally get it closed. Hello!

Help

This is great info if you are interested in Twitter. Which I am embracing. Like any technology it's knowing how to use it that makes the difference. Thanks for the great pass and I appreciate to be able to pass it along.

Kim

It's a New Year time to stand tall and make a decision to tell the cold hard truth. When you walk into that listing appointment remember they asked you to come because you are a real estate professional and they are looking for guidance and solutions.

 Now if your end game is merely to get your sign in the yard then you won't be in the game too long. However, if this is your career you get that it's a bigger picture.  The bigger picture... your reputation, referrals, delivering on what you say! Remember you are dealing with folks biggest investment don't make it about you. Once you do you lose.

 Maybe your excuse is you just can't be that hard on them, it will hurt their feelings. How would you feel if the cancer doctor felt really bad about your terminal diagnosis so he told you everything was fine come back in 6 months? Too bad you won't be showing to the appointment.

 That's what many agents are doing out there with seller's finances. They are over pricing homes to get the listing meanwhile the market is passing the seller by till they are in ruin.  

 I'm not talking about the seller who won't listen. We all have dealt with them. I prefer to be the second listing agent on those because now they are prepared to listen and I didn't have to spend my money on a house that wouldn't sell.

 If it smells, tell them, if it's cluttered tell them, if they want to overprice it for the market tell them. You don't have to be unkind you just need to be honest. Suggest an appraisal if need be.

 I would love to hear from some of the best how you handle the seller that is in denial and at the same time really needs to get their house sold.

Well, we are smarter, leaner, and wiser! There are less Realtor's, Mortgage Brokers, and Wanna Be Inspectors in the business. This is GOOD!

Now that you have rid yourself of marketing that doesn't work, team members that were order takers and people on your sphere list that shouldn't be there it's time to Make Things Happen!

Success is a state of mind, if you believe in yourself first, than your confidence will lead others to put their confidence in you.

• Stick to the plan. (make sure you have one)
• Stay lean even when you get busier. (save for tomorrow)
• Focus on your past customers, current customers and your productive sphere. (this is a referral business)
• Have processes in place to keep you on task. (people oriented people tend to get distracted easily)
• Give back (you reap what you sow, good or bad)
• Refresh Yourself regularly (when you're in a better state of mind you're more productive)
• Keep learning (as soon as you think you've arrived, you just became a know it all! Who likes a know it all?)
• Make a commitment to step up your professionalism ( Realtor, let's represent!!)

I wish each and everyone of you the best! Happy New Year!

Kim Knapp

Realtor Jacksonville Florida

When we moved here it felt like we lived in a resort. The good news is, it still feels that way. The kids love it and so do we. Walk to schools, the public library, YMCA and more. Want to find out why so many folks are calling Fleming Island PLantation home? Check out the amenities in Fleming Island Plantation? Enjoy the slideshow below!!