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War Paint or Voodoo?, I'll Try It To Get Into Some Short Sales

By
Real Estate Broker/Owner with Realty Works Temecula BRE No: 01233850

Short Sale Showing Horror Stories:  No Sign, No Lockbox, Appointment Only, Dogs On Property, Do Not Disturb Occupant, Drive By Only, Listing On Hold:


I've been pretty lucky representing buyers on short sales until lately, it seems it's getting harder to view them or maybe I've just had a stroke of bad luck!

(One of my colleagues says he will not show short sales anymore at all because of the inept agents that handle them)!


Ruling out short sale showings is just not possible in our Southwest Riverside County real estate market, right now.  This is because the majority of the listings are short sales and buyers want to try to see them.  Some listing agents are great at notifying, educating and preparing sellers who are short selling their homes...then there are the other 90 percent of short sale sellers who are so ill prepared they act surprised and even shocked that I want to show their home.


The hold status short sales are an entirely different case study and an entirely different problem.  I have a buyer who is on alerts and called me to tell me that a home came up in a golf course area that she really wants to live in.  By the time I called the listing agent the home was in "Hold", status.  I asked why the  home was in "Active", status for only a couple of hours and if we could see the home.   The listing agent replied, "I put the home in hold status and when you do that you have to put a date and time for it to go active so the home went to active status automatically".    My client still wanted to drive by the home and see the outside.  Low and behold, the owner was standing outside waiting for another agent to do a BPO, my client immediately began quizzing the owner about the home and he became a little agitated so I stopped my client from questioning him and after looking at the back yard we moved on.  


My client wanted to write an offer on the home without seeing the inside as I provided her with pictures from when it was previously listed.  

we submitted our offer and the home showed up as active again three weeks later, and I got the same story from the listing agent...she had no idea that the home had automatically gone to active status and she needed to put it in hold again because the seller does not want to show the home.


Now, my client wants to look at other homes as we were told by the listing agent that the home will be in "Active", status again soon as the seller wants to see what other offers will come in because it has been so long and even though our full price conventional offer with total pre-qualification, is an awesome offer, asking for nothing, (because it is a short sale), the seller is willing to risk my buyer not waiting by refusing to sign the offer.


My buyer tells me she is really excited about another home, and just my luck it was another home that was in "Hold", status that just came active....I felt like 

doing some kind of magic spell, or voodoo dance, to make this home easier to see than the last one and maybe I should have because when I called the show phone, I got an answering machine and then a call back to contact the wife at a different number.  

Well knowing that short sales are difficult to show, I put on my best phone voice and contact the wife.  I say as pleasant as possible that I would like to show the home at her convenience, when ever she likes!  She stammers and stutters that she is not ready to show the home but if we really want to see it we could see the home but not until 6:40 p.m the following evening, because she had no idea that the home was to be shown and she had a lot of work to do on it.  

If anyone has a magic spell or some voodoo that works to get into these homes easier, then please share, I'm ready to try anything!


 

Comments(42)

Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates
Long story for a short sale. Go on a time capsule and try and explain to someone in 1995 what a short sale is.
Jul 13, 2012 12:47 AM
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

I'm just wondering out loud if some of the blame should be placed on the homeowner.  With all the information out there on the backlog the banks are experiencing in getting rid of these short, if you slow down the process you get to stay longer and for FREE.

Jul 13, 2012 12:58 AM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Michael:  Thank you, I need good luck wishes!!!!

Pamela: That's three votes for War Paint...I wonder what would happen if I really wore it!!!!

Erv:  It's no better now in 2012, many consumers don't get the concept at all.

Chris and Dick:  Seller's are in denial, like people do about many things they don't wish to think about or prepare for.  Some listing agents are better at preparing these reluctant sellers and some I know will not even take the listing if the seller is terribly difficult to work with.  Also, if the MLS would instill stricter rules for the status of the listings it would definitely help the situation!

Jul 13, 2012 01:05 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Jane -- I hear you on this one.   How about the short sale listings that come on the market with marketing remarks that read "sold during processing" -- HUH?  How is that even possible?   Then months later when/if it closes it is sold through dual agency.    How about proper exposure to the marketplace -- isn't that what many lenders participating in short sales want to see?   The "bad apples" in this segment of the market certainly can give short sales a bad rap.

Jul 13, 2012 01:23 AM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Michael:  Thank you for your comment.  This is why I am against dual agency.  I know I am in the minority on this one but in order for there to be no conflict of interest this would have to be not allowed.  The big agencies and even our own CAR organization here wants to keep dual agency and keeps some of our money for it's legislative backing.   

Jul 13, 2012 01:28 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Its interesting.  I have tried to steer clear of short sales because they are so problematic.  If my buyer has a time frame that is at all tight, I tell them that short sales are not for them - becuase its the truth.  However, I've been doing photography for agents and one agent is short-sale specialist.  Getting into those homes just to get the photos can be a nightmmare of complexity.  I'm used to sellers jumping up and down EAGER for me to finish the photos that show off their home so nicely.  But in the case of a short sale, the photographer(and buyer) are just an intrusion to the occupant. They aren't happy about their situation and many don't WANT to sell their home.  It makes my job really hard because i don't make that much on a photo-shoot - so my time is critical and needs to be respected. 

Jul 13, 2012 02:28 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

There seems to be a lot of short sales that are listed as a "formality" but never are expected to be actually on the market -- seems to be a sign of the times -- all the best.

Jul 13, 2012 02:42 AM
David W. Hughes
Home Realtors 208-870-5133 - Nampa, ID
Designated Broker at Home Realtors of Idaho

Great post Jane. I will deal with short sales all day, as long as I know the agent knows what they are doing. I know who does and who doesnt usually.I stear clear of the ones I know play games. Especially the way underpriced ones, and I deal with the ones I know are realistic and can get the deal closed. If I haven't already dealt with them in the past, a quick phone interview and you can tell right away if they have a clue whats going on. I think we may be seeing a second wave of short sales, so they're not going away anytime soon.

Jul 13, 2012 02:46 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Too many shenanigans for me. That agent is burning bridges for years to come. I have been told by many agents in Louisville that they don't show short sale listings unless they are mine because they know I do them properly and have a high closing rate.

Jul 13, 2012 03:03 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

-Hi jane,  The issue of selling shorts is a tough one and when made more difficult by an agent it makes even less sense.  Have a terrific weekend !

Jul 13, 2012 03:34 AM
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Jane, I had several clients earlier in the year who were hell bent on buying a short sale, I found the same thing you experienced difficult to show. I started to develop a short sale hierarchy of which ones I would show, starting with the vacant ones first then the ones where they would actually answered their phones and  then the rest. I agree it can be very frustrating. 

Jul 13, 2012 10:39 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Jane, chicken bones and unicorn dust usually does the trick for me. We don't have a "hold" status, but it would drive me Crazy!

Jul 13, 2012 11:33 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Jane, we just urged an agent to take a house off the market that we wrote an offer on and it had at least two other offers. The sellers won't sign. Their attorney in NJ is giving them advice that we don't understand - or at least they say that an attorney in NJ is giving them advice. Finally it has expired. It's unethical to have a house on the market that isn't really for sale!

Sharon

Jul 13, 2012 12:35 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Jane - It can be so difficult to show short sale homes that maybe we should be doing rain dances before each call ; )

Jul 13, 2012 04:24 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Your problems starts with the listing agent of the short sale. They should look at all offers and chose 1 offer to submit to the sellers bank for approval. Once that offer is submitted it is easier on all involved to stop showings. You can only submit 1 offer at a time, that offer should be negotiated to eliminate contingincies as you noted becuase it is a short sale and the sellers bank will unlikely approve a short sale offer loaded with contingincies. As a buyer agent I avoid short sales that already have an offer submitted, all you do is agitate the buyer trying to buy a home they can not have and irritate the seller who is being forced from their home. A good short sale listing agent will educate the seller and inform buyer agents with real time and accurate info where the home is in the short sale process. Unfortanately there are too many inexperienced short sale agents who dont know or are out of town and dont care to complete this extra work of updating and informing.

Jul 13, 2012 10:10 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jane, this sounds like a nightmare!    We have many short sale agents trying their hand at listing these, and have no idea what to do.      Good luck with this buyer, hope you find a home of their dreams!

Jul 13, 2012 11:28 PM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Jane - are your Southwest Riverside County agents holding two state licenses?  I see that here in AZ ALL the time. First, a short sale is not a "get out of free card" for the homeowners.  Yes, it will typically forestall foreclosure, but it takes work.  Then, there's the agents who are taking the short sales without properly preparing the homeowners - there WILL be showings, your house is expected to be available.  The banks require copies of the listing sheets and when they see "no showings", "no signs", etc, they'll stop any of the process and proceed straight to foreclosure - no passing go, no collecting $2000.  Agents and home sellers need to understand the process and need to work within the system - not willy nilly!!!

Jul 14, 2012 12:37 PM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

I'm in your neck of the woods and I am guilty of making showings difficult.

Here's what is going on in case this was a real cry for help and you were not venting (You know, men are from Mars kind of thing!):

We do this for many reasons, here are just a few:

1. It's a rental property and the owner is trying to collect rent as long as possible before doing the short sale while keeping the days on market active.

2. The sellers want to live as long as possible undisturbed before doing the short sale.

3. The sellers already have a family friend or relative that will buy the house and rent/sell it back to them.

The "hold" status is true. I think we can have it on hold for a max of two weeks before it automatically "active" again. The name of the game is usually to stall as long as possible while keeping the days on market going.

Personally I am not concerned if a buyer doesn't come around as I have a list of investors who will slam an offer in. I have never lost a short sale because a lack of a buyer. 

You can weed out the headaches by asking these questions:

1. Do you need a buyer for your short sale listing or do you already have a buyer in place?

2. If my clients were to make an offer on the property and the seller accepts the offer, when would you be submitting the offer to the bank?

If you get positive responses from the two above questions, then ask the third important question:

3. What would it take to get this property for my clients? Do you need them to pay for HOA fees, 2nd liens, etc. This question will enter you in short sale dialogue that will open the conversation as to the skill set of the listing agent and the issues he/she might have.

Finally, that said, to get control of the short sale and to get it at a great price and favorable terms, you must control the owner. Understand their issue and have your client exploit the opportunity. If you need help with that, let me know and I will send you a link to my blog to show you how it is done! ;)

Jul 14, 2012 01:13 PM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Ruthmarie:  Regarding the photo's, I guess we can tell a lot by how many photos and if there are any of the inside or not.  

Benjamin Realty:  Formality's sake more often than not.

HomeRealtorsIdaho - I agree with you completely.

Dave:  Good for you, reputation is so important!

Bill:  Thanks for stopping by, you too!

Adrian:  Some buyers want to see only one or two and don't care about whether they are vacant or not or if you can get an appointment...they just want to see the house and cannot understand why it is so difficult and as much as they are told they still don't understand why they cannot see a home that is listed for sale.

Eric:  Please send me some Unicorn Dust I already have chicken bones here in California, but no Unicorn Dust!

Sharon:  Maybe they keep it on just to get their own client calls or maybe they like looking at their own listings....did they actually take it off?

Christine:  At least the rain dance would be good exercise!!!

Scott:  Straightforwardness like this is rare but I agree with you completely!

Joan:  Thank you so much, I am trying!!!

Juli:  Looks like we have similar loose MLS rules, unlike Iowa as Karen mentions in my first comment here.

Satar:  Thank you for your honesty but really, why don't you simply use "Back UP", status until you really need a buyer....like you said there is no shortage of buyers right now.   When the market changes and you are begging for offers it would be a different story.  

I think your steps above 1,2, and 3 all should be reasons for putting the listing in back up status.    (Those that are rentals, or those that already have the relative buyer or those who want to stay living in the home as long as possible should simply be put in back up status)...especially in this market that is so flush with buyers...even if it has been in back up status for several months, placing it in "Active", status will garner multiple offers only at the time they are needed.  

The secret code of the bottom three items requiring extensive do you, will you, what can I do could be avoided if only serious sellers would be placed in Active status.  

It it very confusing to buyers who only want to see a home as they have trouble understanding why the home is all over the Internet, Zillow, Trulia, Realtor.com, Movoto, etc., and it's not really available at all!!!

 

 

Jul 14, 2012 02:14 PM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

A few reasons, you need the number of days on market to accumulate. The BPO asks if the listing is on the market and for how many days. You also keep it on active as some bank negotiators check. If there was a way to avoid having you call me and proving to the bank's negotiator that we tried to sell the property, I would do it. I'm open to any suggestions here!

"The secret code of the bottom three items requiring extensive do you, will you, what can I do could be avoided if only serious sellers would be placed in Active status. "

Such is the nature of short sales. There are some sellers who take the short sale as a means to dispose of an unwanted property. Some like to exploit any opportunity that they can. My goal is to do a short sale with the seller's best interest in mind, not their lenders.

"It it very confusing to buyers who only want to see a home as they have trouble understanding why the home is all over the Internet, Zillow, Trulia, Realtor.com, Movoto, etc., and it's not really available at all!!!"

Yeah, I can understand that. Like I say, ever short sale is a story. It takes a great real estate agent to be able to read the listing and manipulate it to their buyer's best interest.

Jul 14, 2012 02:29 PM