Real Estate Blog - "I won't show my Buyers a Short Sale"

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"I won't show my Buyers a Short Sale"

What? Yes, there are Buyer's Agents with this mentality running rampant. With all the talk you hear of Code of Ethics within posts, I would say a Real Estate Agents's ethics would be questioned if they do not show Buyer's listings that are marked as a Short Sale.

I was fortunate enough to benefit from receiving a customer recentlly who found me on line because she wanted to look at Short Sales and her Agent wouldln't show her any Short Sales. Yes, you heard me, the Agent wouldn't show her any Short Sales. This is wrong, dead wrong.

Points perhaps taken by the Buyers Agent is that Listing Agents who aren't knowledgeable in Short Sales will not help their Buyers close on a Short Sale which leads me to question whether or not Listing Agents who take on Short Sales listings are putting themselves in a position of others questioning their ethics practices when they knowingly accept a Short Sale Listing without taking the extra efforts needed to arm themselves with the skills to fulfil a Short Sale closing.

Hmmm, so who is more of a detriment to the customer?

The Buyer's Agent or the Seller's Agent. Arguments from both sides clearly have their place. How are Agents making their choices when it comes to customer representation?

What it really boils down to however is ones conscious. How can you do what you do and sleep at night? These types give this profession that I view as being an honorable profession, a dirty name. I say clean up your act!

The more you know, the better prepared, the better the outcome.

I serve Coral Springs and the surrounding cities such as Coconut Creek, Parkland, Sunrise to Southwest Ranches in Broward and Dade and Palm Beach Counties of South Florida as your dedicated Realtor and CDPE Certified Distressed Property Expert ready to work for you. I'm looking forward to hearing from you soon. Please call me at 954-464-1100 or email me at: lynnp@ImagineYourHouse and it would be my pleasure to help you!

Learn more about me and Coral Springs Real Estate as your Coral Springs Realtor

The more you know, the better prepared, the better the outcome.

I serve Coral Springs and the surrounding cities such as Coconut Creek, Parkland, Plantation, Tamarac and Sunrise in Broward, Dade and Palm Beach Counties of South Florida as your dedicated Realtor, Short Sale Specialist and CDPE Certified Distressed Property Expert ready to work for you.

I'm looking forward to hearing from you soon. Please call me at 954-464-1100 or email me at: lynnp@ImagineYourHouse and it would be my pleasure to help you!

Learn more about me and Coral Springs Real Estate as your Coral Springs Realtor

Posted by Lynn Pineda-Coral Springs REALTOR, Short Sale Specialist on 03/30/2009 09:47 PM

Comments (26)

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26 Comments on "I won't show my Buyers a Short Sale"

MAR

Lynn -- I hate showing short sales ... but would never let my buyers know that. If a buyer expresses interest in a short sale, I explain the process and pitfalls but, in the end, I work just as hard for my buyers on a short sale as on any other deal.

What I won't do, however, it take a short sale listing. The reason for this is that I have never handled a short sale listing, and do not feel that I would be able to provide the seller with the kind of specialized service that a short sale listing requires. I refer such listings to agents I know who are more competent in this area than I.

Tee, hats off to you. I appreciate your honesty. If others thought like you, in the end more Agents wouldn't be so fearful of showing a Short Sale as those listing them would be skilled at handling them.

Short sale properties can be challenging, I am the listing agent for one that I have had for a year.

We've had several offers and several dissapointed buyers, and extremely dissapointed sellers. Several times a week we call the bank for yet an approval on the latest offer.. the bank will wait 3 months before they accept or reject. Showing Buyers short sales is not always in their best interest. If you represent your buyers properly and review the pitfalls of what can go wrong.. they more than likely won't even want to see the short sale.

I have been showing short sales to my buyers but am new to it. I had no idea the length of time before the bank responds. Good to know.

Lori, that is true that Short Sales can be challenging. However a challenge shouldn't deter a Buyer if the home meets the Buyer's wants and needs and they are willing to wait to get the home that is right for them. It those criteria are met, than the home would most definately be in their best interest, wouldn't you agree? Getting a home "on sale" is a good thing and perhaps the only pitfall may be the time, yet this isn't always a given. The Buyer should have the choice.

Kim, if you put yourself in the know and even if the Listing Agent isn't you can be an asset to the transaction. The Listing Agent should be communicating closely with you throughout the process as all Short Sales don't take forever.

Lynn I am with you. If your buyer wants that home then that is what you should work towards to get them that. As a buyer's agent I will get my buyer what they want. As a listing agent I do what it takes to get the deal done. I have three short sale listings in my portfolio right now, and have an offer coming in on one of them. I will be walking that one through with the banks. So it comes down to what are you willing to do for you client. I do whatever it takes to get the deal done.

Larry, so nice to hear...somebody who is looking out for their customer's interest and not their own. What goes around comes around.

Lynn - I just wrote a very similar blog (or complaint if you will) ....I have worked exclusively in pre-foreclosure, particularly short sales, for my entire career. So, I am ready and willing and have the proper expectations when it comes to buying or showing a short sale listing. However, I find that the majority of selling agents that shy away from showing short sale listings do it purely out of personal distaste for the process. Perhaps they want to close a deal sooner not later, need a commission in the next 30 days not 3 months (?), or don't want to have an unhappy client to deal with when the shrot sale process takes too long or just doesn't 'work out.' -Many agents have had bad experiences working with listing agents that don't know how to handle a short sale.....Either way, it is agents like yourself that need to help motivate and draw attention to the need to show short sale listings. The market has changed! Thanks for the post. I'll subscribe.

Short ....long..I really don't care...

This is very true. I know quite a few agents who would say it is not worth it and short sales never close.

Amy, oh I know what are the Agents true motivation? A quick paycheck that satifies quickly to pay the bills or do the right thing and show the Short Sale as it really does fit the needs of the customer better? To me it's very clear; just do what's right!

Pat, you should care as it matters.

Huiting, that is such a shame as it is all worth it and short sales do close; I close them and many others do too. We just have to hear more about the rates of success instead of focusing on the glass being half empty, don't you think.

MAR

Lynn, haven't there been some recent changes that make it more likely banks will move more quickly? It seems I have also heard that they are no longer allowed to negotiate commissions unless they exceed a certain percentage.

I handled a short sale listing inadvertently a few years ago. It was difficult but my sellers and I worked together and just hounded their lender and inundated them with every piece of information they asked for. We did get the contract accepted.

Kathy, it seems that Lenders have become more proactive and realize that a Shrot Sale is much better than a foreclosure. Plus, the Lenders are getting their systems into place. FNMA initiated that their backed loans must pay a Realtors commission up to 6% - a great step for Realtors!

You experienced what participating in a Short Sale is all about - persistence is key!

APR

I completely agree with you. Although I always like to query the listing agent first regarding the short sale situation. I don't want my buyer clients spinning their wheels with a unqualified/uncommitted seller or uninformed listing agent trying to do the impossible...

APR

As a realtor, the important part is to be knowledgeable about short sales before dealing with one from the listing or buying side. How can I guide and advice a client without knowing the information myself? Thanks for the post.

I can understand the fear of getting into a transaction, even on the buyer side, where you don't feel you have the experience to handle. But if she feels that strongly about it, she should have another agent available to refer her clients to. At least that way she can receive a referral fee. And more importantly, the buyer will be represented, not just left out there "alone". When short sales first starting popping up all over the market, I was worried too. But then I realized that they are a fact of life in this market, so I'd better figure out how to handle them. So far I have taken two short sales listings and I'm getting ready to write an offer for a buyer on another one. You can't hide from them right now so you better educate yourself on how to deal with them!

APR

James, you're so right to check out the listing Agent before showing a Short Sale as we need to know what lies ahead and whether or not the Listing Agent is on the ball.

Irene,,,,EXACTLY! How can we provide guidance unless we are knowledgeable?

Samantha, it's true that there are options available when customers are concerned and if you don't know how to handle a Short Sale refer it out as a referral fee is much better than messing with a customers home purchase. You took the right attitude realizing that Short Sales are a part of this current Real Estate market and you're best to learn the ins and outs of them.

APR

Don't kill the messenger! That is the disclosure I thought about creating to make our buyers sign when dealing with a short sale. It is hard to deliver the news after waiting 2 months to hear back from a bank only to have them walk away at closing. Our area has created more paperwork for buyers to sign as a disclaimer on short sales. If I had to sign a piece of paper stating that I acknowledge that it can take up to 6 months for someone to make their mind up and then allow them to walk away at the closing table because the investor changed their mind - well I might just avoid them as well. I just received my CDPE and the reason why is I wanted to learn how to list these homes the right way so that buyers would not have to wait only to be let down. You also have to consider that the "Commission to be split 50/50" comments are very disturbing. As an agent listing the home, any negotiations on listing commissions should be on me, not the agent who has all the options to show their clients and then gets paid half of what they could have been making. I think that is one of the huge problems facing buyers agents.

APR

I did some local market research on short sale listings as I am a fan of them whether listings them or showing them to my buyers as they can be a value priced property (if listed right). BUT, I found that when looking for listings using the keywords "short sale" in the listings remarks that the agent remarks actually said "this is NOT a short sale" more than half the time telling me that most agents are afraid of or inexperienced in dealing with short sales.

APR

David, you're right too many Agents are inexperienced in dealing with Short Sales and because of their lack of educating themselves, the customer suffers. You will find half of the listings stating that they're not a short sale as if a Short Sale is a disease. Short sales are far from a disease...if you take a look around you'll see that they're selling!

APR

The listing agent, their education and experience is what makes or breaks a short sale...and knowing who knows what makes all the difference in the closing..or not.

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