I have been recently reading a few blogs written by fellow agents about short sales and Realtors. One of the first ones I read a few days ago divulged into the topic of Realtors being sued because they were unable to procure a buyer for the house before it went into foreclosure. As ludicrous as it is, it apparently has gotten some merit on the west coast.
The other one which I found extremely interesting had to deal with the Ethics rules that we as Realtors have to abide by. I actually went back and read over article 11 that she referred to in detail. She was 100% right. If you are not competent enough to handle a transaction find someone that can. It is a fiduciary responsibility we owe clients.
Well after reading those blogs and the numerous comments on each one. I decided it was time to write about my personal experince in the short sale arena and my dealings with agents.
I think both arguments and blogs were right. We as Realtors cannot guarantee we can procure a buyer for you. We do our best to analyze the current market conditions and market the home best as we can to attract as many potential buyers. On the same hand we do owe it to our clients to pass off the short sale if we are not sure of what we are doing.
I have been involved on both ends of the transactions. I deal a lot with short sales in trying to help sellers avoid the stigma of foreclosure and buyers looking for a good deal on a home. I have come to some rational conclusions. One's, that I am sure are shared by many agents out there as well.
When I represent a buyer in a transaction. I have a responsibility to look out for their best interests above all else. If they select a group of homes to look at as a potential purchase; I do my research on the home. The first thing I check is if it is a short sale. If it is I personally call the Realtor who is handling it and ask a lot of questions. if I do not get the answers I want I advise my clients not to pursue that home. I tell them that the agent is not competent in Short Sales and the whole deal could and probably will blow up before we get a chance to close...(trust me I have watched it happen more than once). Thus, the only ones losing in this transaction are the homeowners. Their home is not being shown and it has nothing to do with price or marketability of the home. It is the agent.
On the selling end I make sure that my clients are fully aware of the ramifications of a short sale as well as a foreclosure can have on them. I REFUSE to take a short sale listing unless I know they have consulted with both an attorney and an accountant about the ramifications of it and the consequences that can arise. Only after I am thoroughly satisified they understand that will I accept the listing. Guess what I have sold them all that I got. The others went with a different agent becuase they thought I was to demanding....and the irony is some are still on the market four and five months later and some went into forclosure. Some did sell as well. but a Short Sale is demanding of a Realtor's time and energy. it is not like handling a reguilar transdaction. there is a lot more involved in it and the homeowners have to be on board with it as well.
Make sure your agent is fully versed in short sales. If you are buyuing ask how the process goes, the timeline involved, the bank, their experince dealing with the bank. On the selling end make sure you have an agent who knows what to do with a short sale listing. Is not afraid to ask the tough questions and will put the time and effort in to make sure it closes. Unfortuantely, most agents are just taking listings to get a commission and are not competent in the sale of a short sale.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Connect. Share. Learn.Welcome to ActiveRain, the #1 social community for real estate professionals.
;)
;)
;)
3 Comments on Is Your Realtor Competent to Handle a Short Sale For You?
Dave, how should a short seller MAKE SURE the agent that is talking to them is competent? Ask them what DESIGNATIONS they have? How many people have a CDPE that slept through half the class, or did it ONLINE (LOL!!)?? Furthermore, who certifies the certifiers? Some agent with two and a half years of selling time shares goes on the seminar circuit or becomes the newest "COACH"??
What constitutes COMPETENCE in real estate? How many totally incompetent BOZOS have real estate licenses and advertise themselves as "Your Local _____ EXPERT"? How totally EASY is it in your state to get a real estate license? In Wisconsin it is incredibly easy, In fact, recently a guy with a record for sexual assault used a fake name to get a real estate liense and re-offended!
There's no way for a consumer (especially one in trouble) can check up on the competence of an agent, especially in light of the fact that there is so much BULLSHIT in the personal marketing campaigns of SO MANY real estate licensees.
Pat,
A seller should ask the agent if they have ever dealt with short sales beofre. How is there success in getting the home to the closing table, how they handle dealing with the bank just to start. Yes, there is a designation for shoret sale called SFR. I took the class and attended the webinars to get my certification. I also drilled short sale negotiators on the process and what they expect out of the Realtor.
Not every state has the same requirements to get a liscence. In North Carolina you are required to attend a 90 hour pre liscencing class. You must pass that test with a minumum of 75% before you can even consider taking the state exam. A vast majority of the people taking the class do not pass the class on the first time around and have to re take the class. I understand not all states have the same requirements to get a liscence. i cannot control that. But as a Realotr do we not owe it to our clients to give them the best possibel representation? The code of Ethics requires us to pass on to someone if we are not totally competent in that area or field.
It is a shame that some people can pass through a system and get a liscence that should not be allowed. In North Carolina the requirements are strict that they have taken away most of the problems like that. Granted no one ssytem si perfect....but we as Realtors should be held to a higher standard when dealing with clients. A home purchase or sale is the largest transaction they are going to make in their life time.
Dave, I am not sure I am competent anymore. the market is too crazy. good points.