A Great Way to Sabotage Your Short Sale Listing

Yesterday, I was showing houses in Silver Spring, and many of them were foreclosures or short sales.  And while I saw many things done in the presentations of some of these homes that I would do differently, there was one listing that stood out.

Before showing the house, I called the listing agent.  His instructions were to just go and knock on the front door.  The people who lived there would let us in. 

So I pulled up, parked the car and knocked on the door.  A very puzzled gentleman opened it to us suggesting that we must be at the wrong address.  This house, he said, was not for sale.  I double checked my MRIS print out, and sure enough, it showed his address and a picture of this very house. 

It turned out to be tenant occupied, and the short sale specialist (supposedly there to help the sellers avoid financial disaster) forgot to tell the long-term tenants that their home was for sale.  They were very accommodating, however.  They were nice enough to show us around, pointing out all of the deferred maintenance, crackling electrical outlets and green fuzz growing on the walls of the wet basement -  all of the other things likely to send buyers screaming from the property.

It worked.

This is a part of the world where tenants have more than a few legal rights when their rental homes are being sold, as a short sale or otherwise.  And their cooperation is crucial to making any deal work on a tenant occupied property. 

And you know what?  I think that agents like this are at least as responsible for the housing crisis and the big bad banks and politicians we like to point our fingers at. 

Yikes!

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25 Comments on A Great Way to Sabotage Your Short Sale Listing

20 Most Recent Comments Displayed Show All

NOV
29
2011
1,526,160 Points 163 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

But were there multiple locked doors that you couldn't open?  That's my favorite short sale home to tour.
4:46pm • #6
523,274 Points 10 Featured Posts Outside Blog Called Shot Master

I have heard of this before.  Tenants who have no idea the house is on the market.  How awful is that?
5:35pm • #7
217,818 Points 10 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

That is just incredible, Pat! Not only do the tenants have rights and deserve basic consideration, but just exactly how does that represent the seller! If not responsible for the housing crisis, agents like this are certainly responsible for giving real estate agents a bad name. Shame on this one!
7:11pm • #8
796,896 Points 80 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

OMG, you hear these stories and cringe...i take such care of my short sale clients...i think i'm a bit nuts about salvaging them...I can't imagine doing this to a seller....
8:18pm • #9
617,295 Points 60 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

The very first short sale I lost to foreclosure is because the short sale seller, in an effort to continue to receive money, rented out her condo. The tenant from hell refused to show the property, claimed that he was being abused by the realtor(s), and when he did allow people in, his entire family had both the TV and the radio on and refused to leave. It was an impossible situation. Since we couldn't show it, no one wrote an offer. And it was foreclosed.
9:16pm • #10
428,562 Points 23 Featured Posts Outside Blog Called Shot Master

Pat....I wish I could say I was surprised but I am not.  I have run into similar situations.
10:00pm • #11
1,328,470 Points 37 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Pat

The listing sales associate was a little short on professionalism.

Good luck and success.

Lou Ludwig
10:38pm • #12
663,340 Points 17 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Pat - So sad that the tenant had to find out that way!    Hope it's short and sweet for the renter.
11:11pm • #13
850,421 Points 72 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Patricia, You are absolutely right that the agent is equally responsible.  Add to that, at least in California, the agent ignored tenant rights and was totally disrespectful.
11:24pm • #14
NOV
30
2011
975,584 Points 350 Featured Posts Attended Rain Camp Called Shot Master

Soooo, the tenants, "long-term" as you say, are canning the deals by walking people through the bad lands?  What will happen when no deals go through.  The tenants aren't out anyway?
3:48am • #15
106,027 Points 3 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Pat:  So many tenants are very fine people.   More and more of them are recently displaced homeowners.    A little courtesy from the seller and listing agent can go a long way to make it smoother for everyone.
4:08am • #16
187,855 Points 15 Featured Posts Localism Sponsor Called Shot Master

I'm not even sure what to say. I will never understand the sort of discourtesy this listing agent showed these tenants. What a shame.
11:46am • #17
1,585,361 Points 430 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Pat

Not a fun situation to run into. But it seems to me it was the seller's (landlord's) responsibility 1st and not necessarily the agent's. The agent, hoever, should have checked with the owner to see if the tenants HAS been told and appropriate arrangements made regarding showings that were also reflected in the showing instructions.

Jeff
11:37pm • #18
DEC
04
2011
1 Featured Post Outside Blog

This is a more common story than not and if I were a short sale renter I would opt out and find a new home to rent. The tenants need to be informed. Also the laws need to be considered about the seller paying their mortgage when they have a tenant. Because if they are not it can be the banks money. Yikes so much to consider that is why all SS should have a great ss attorney.
2:49pm • #19
DEC
07
2011

Truly a sad indictment of our industry.  "Common sense is not so common."

                                    - Voltaire

 

 
2:58pm • #20
DEC
21
2011
137,278 Points 1 Featured Post Outside Blog Attended Rain Camp

Should the seller not have told his tenants that the home was for sale?  It seems that the listing agent would have mentioned it when he went to preview the property.
8:57pm • #21
JAN
02
2012
492,687 Points 46 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I have had problems with that, too. You feel so badly for both the seller (no one is going to buy that property!) and the tenants who are finding out that --one way or another--they are moving.
5:38pm • #22
JAN
03
2012
345,135 Points 5 Featured Posts Called Shot Master

Pat, Happy New Year! Unfortunately we don't have a system to verify landlord ability to survive the lease term. When a renter wants to walk out and terminate the lease early landlord throws the lease contract terms. However the landlord does not feel obligated to inform the renter on how they will receive their refund on their security deposit and home is for sale.
9:45am • #23
JAN
05
2012
175,878 Points 5 Featured Posts Outside Blog

We all have heard that saying, "People don't care how much you know until they know how much you care."  Apparently you found a listing agent that doesn't care or know.  How these folks stay employed in the industry escapes me...
9:54am • #24
JAN
11
2012
159,370 Points 3 Featured Posts Outside Blog

Thanks, Pat,

I am with you on that topic... It is just unbelievable what we can see sometimes in our business.

Tatyana.
11:21pm • #25

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Patricia Kennedy

Washington, DC

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Evers & Company Realtors

Address: 4400 Jenifer Street NW, Washington, DC , 20015

Office Phone: (202) 364-1700

Cell Phone: (202) 549-5167

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Pat Kennedy -- author of The Irreverent Guide to Real Estate -- gives you a look at life on the streets as a real estate broker in our nation's capital. And her blog is peppered with great advice combined with humor!


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