Buyer's Agents Are the Biggest Roadblock to Closing a Short Sale

I agree Elizabeth and the 2nd worst thing is the listing agents, who don't know how to put a package together.

We (our TEAM) now have our own form...the buyer must wait 90 days or no return of EMD. I got sick of buyers walking.

We just had our first BofA approved in 30 days. My first time using Equator.

Missy has the right idea.  We will not return EMD until there is a resolution or the 90 day wait period.  These sales are a lot of work...and the buyer's agents often haven't a clue.  So they can't explain anything to the buyers. 

Just sit back....we'll keep you posted.  And, that multiple offer scenario with multiple properties is a recipe for disaster. 

Thanks for the great post! 

I'm in the camp that blames the banks.

I'm a buyers agent, and my duty is to my client, not the listing agent, the seller, nor the bank.

I never advise my clients to make more than one offer. However, if they want to continue to look and decide to place another offer, then I must and will follow their instructions, even though it amounts to a lot more work for me.

When that happens, I do tell my clients that if an agent asks me if my buyer has another offer in on another short sale, that I am required to treat them honestly, and will have to disclose that we have submitted another offer.

I bet this does happen a lot. I had a buyer ask me the other day to write two offers on different properties. I warned her that she might be buying two houses and that I would only write one for her.

Hi Elizabeth, Since I haven't done a short sale on either side- this is surprising.  I don't think I would want to write multiple offers, unless my buyer wanted to buy multiple homes.

Suggested and reblogged - right on the money Elizabeth.  We use a "standard" Counter Offer for terms that scares the flakes away.

Elizabeth, I do not understand why this post is not FEATURED! You are so right on here. I wish it were a requirement that agents be trained and tested (a real hard test) prior to being allowed to work either side of short sales.

I'm glad you wrote this post. The other day I commented that in the past year I (personally) have never had any buyer that I represent bail on a short sale during the waiting phase. To me, all that means is that most agents do not explain thoroughly to the clients about the road ahead. SO, I fully agree with you. And... I like the photo you selected for the post as well.

Hi.....uh oh, I had to disagree and wrote my own post on the subject of annoying listing agents. I also suggested this for a feature (to make up for it?). I love you, and would love to work with you as a listing agent on a short sale, clearly YOU know what you are doing......but so many agents don't. So....

Most buyer's agents do not understand the short sale process. This is not because they don't have the mental capacity for it, but because they're never done one!

Short sales are detailed, negotiation heavy, and require creativity most times to get them closed!

Without the experience forgoes the understanding.

Hi Elizabeth!  I couldn't agree with you more!  Also, there are the buyers' agents out there who don't pass along our weekly updates to their buyers and the buyers wind up thinking that the process has not even yet begun and tell their agents that they want to WALK!  They have no clue where we are in the process and become quickly discouraged if not updated--it's VERY frustrating! 

We were recently nearing completion on a short sale and the buyer did the same thing--RIGHT when the BPO had been delivered to the bank (I had let the buyer's agent know THAT day), the buyer walked.  Now, why would they walk THEN if they had been properly advised by THEIR agent?  There's only one explanation and that's that their agent did THEM a disservice!

I love working with buyers agents who KNOW what they're doing with short sales!

In a word Yup.......all the objections, less than cordial, professional, polite comments, demands, etc, are always under the guise of "I am a buyer's agent...." which is not a license to be rude...unprofessional...demandng....

Sad but true.  When a buyer's agent is working without sufficient short sale experience or knowledge, they are merely wasting everyone's time, especially the buyer's time.

I eliminated a couple of agents from my network because they simply wouldn't work the short sale offers in a manner that gave them any chance of lender approval. 

That said, there are far too many listing agents with no short sale experience who throw stuff in the MLS with no hope of success.  Far too many.

Fact is, there is a dearth of agents with real short sale knowledge and experience. 

I have always told my buyers up front that they need to be patient and wait. It's not going to close in 90 days. If it does, we will be lucky. I don't want to waste anyone's time.

my team members have only been faced with 2 or 3 short sale listings.....there are many buyers who do not want to wait the 6+ months to close....that's the only issue....closing time....our MLS provides a place to disclose whether it's a short sale subject to approval by the bank...

Elizabeth--AMEN!!!

As a listing agent who knows how to do short sales I have found that some of the buyer agents are my biggest problem, not the banks (although they aren't a walk in the park either).  We explain the process thoroughly to them at the beginning and that it IS a legally binding contract with a contingency for approval.  If they buyer's agent doesn't seem to "get it" we warn our seller before we go under contract.  Sometimes those who don't get it still slip through.  I've found that if I can keep the buyer on board we almost always get the deal closed.  When there is a good buyer's agent who understands short sales that is easy.  When it's someone who e-mails and calls every day wanting a new update from the negotiator and gets the buyer all worked up and continues to show them other properties...it's hard.

As a buyer's agent we also have to prequalify the listing agent and make sure they know what they are doing if our buyer is considering their short sale listing.  I think it is completely negligent to take a short sale listing if you do not know what you are doing...but I have seen many listing agents in our area who do that. 

I can't imagine the type of disaster you wind up in when neither the listing agent or the buyer's agent knows what they are doing...

Sometimes, just sometimes the buyers agent understands the short sale process and alllllll the delays that go with it. Sometimes, just sometimes the listing agent is the problem, not the buyer's agent.

I realize my limitations and use a short sale team through our Keller Williams agency. I love the marketing side, and I know that short sales have a lot of nuances and loop holes. So, it's just easier to team up!