Atlanta Short Sales - Why Would You Try to Sell One?

Jim:  Would you list a house as preapproved by sellers at list price?  No.  Why?  Because the terms of each individual contract can vary wildly.  What is someone gave you list price, but wanted $20K in closing costs.  That's a different bottom line than someone who will give you $5K less than list, but wants no closing costs.  How can you expect a bank to do what any seller in their right mind won't do?  Preapproval is something that doesn't exsit.  But if the groundwork is laid properly with the bank, approval is not a mystical thing.  We run comps, we know the market.  We know a good offer vs. a joke any day of the week.   Short sales are getting approved more and more these days, and it's not always an erasing of debt that comes with approval...another thing for agents to be aware of.  Some lenders are requiring site notes.

I agree with you Jim.  I have noticed similar statements in the MLS listings here in Colorado Springs.  Some say: "agent's commission may be reduced by x% by lender depending on final selling price."

Jim- From reading your response to Chris Ann, I think your title should really be why would you try to sell one that may not be one. Maybe I am wrong I don't know but I think you would be interested in trying to sell one if it was put together properly and the agent wasn't just hoping it would be able to be one when there has been no ground work laid, and the banks haven't even been contacted about it being a SS. Many agents don't actually do the ground work themselves, because no it wouldn't be worth it to them. However there are companies out there that are trained and handle all that perfectly fine so the agents don't have to deal with the banks.

Jim and to all as we have ventured into this trying market.  The noise back in Aug. 2007 or even a couple of months prior to the down turn of events the Banks had never been geared up for a Short Sales or Loan modification or even to handle a foreclosure.  The amount of properties crushed the industry and it is now that all of the Bnks are putting together Short Sale teams to handle the transactions.  I have a good friend who is an asset manager for Countrywide and they are now after a yr. and 1/2 putting more staff on for short sales.  When she had first started with them in March 07, she had 300 files just in MI alone to Manage, the scope was huge, and 3 people in her division, so yes the discouraged Agents, buyers and lenders all advised their clients to not even write an offer on a short sales.  Like most agents who stay in touch with their clients took a listing to flat out help them get through.  Why because they sold them the house and I'm sure you work with your clients.   Yes a reactive approach and an approach from all Banks that hindered all of our markets as they are and still are short staffed.  So now the market has rebounded in areas, but I agree with you about Agents who need to work and work smart, as the process is just that a detailed process.  What frustrates me is the agent that has 90 listings, yes 90 listings.  Wow great service, and the Banks again let this happen and they could care less if the offer gets accepted as if they are working on your small margins and it is quantity not quality. So I aggree that these short sales have given the industry a bad rap because of the inabilities of the Baks to staff the appropriate people to handle the business and the greedy agent that thinks 90 transactions is feasable.  Also Jim I also commented on the DPA's and Nehemia had a Town Hall Conference meeting today and is our country willing to give up 50,000 sales per month as the elimination of the DPA's come Oct. 01.

Jim I have to agree, Short Sales seems to be the a new thing in many markets. In the old days, It was just called:  going hat in hand to the banker and begging for your client, to see if  a deal could be made. Some times it worked often it did did not. It was more often the commission that got shorted. Might now mean, the seller can reserve the right to go directly into foreclosure and sue his listing agent for misleading them if it was not approved first.

Jim, sounds like at least some folks in your market are just trolling for money they can go to the bank with and offer the short sale.  Perhaps not all, but some may be.

I'm in a short sale right now.   I've already been asked by the bank to reduce my commission too, which I agreed to do.  Only silver lining I can see in this situation is that the faster we get these short sales and other foreclosures sold, the quicker our local markets will get back to normal.  Call it an ulterior motivation if you want, but I'm all for getting these short sales SOLD.  Maybe our market will level out and I can start to see some form of normalcy again in my income.

Not to mention that, instead of ruining the owner's credit, the short sales also give them a chance in a couple of years to back up and punt the ball again.  Maybe they will be smarter with their budgeting next time and will at least know what NOT to do with their next home.

Jim- That is crazy that your MLS fees are so much. Just curious but how do they work? Are they like a tiered expense higher cost of the home higher fees? And how are you charged the fees, is it when its listed or sold and if its when sold on that 600k home would both agents (if not duel listed) pay the 800+ each?? Yeah I really don't think anyone would want to work to lose money.... just doesn't make sense. If I remember correctly the Flint, MI MLS charged $15 for out of area agents to list on it per home, and regular board dues for Flint agents is $96 for 3 quarters and about $400 for the other quarter, but it is about $1,000 to join, but as long as you pay your board dues it doesn't cost anything extra to list a home... if you don't pay them its $15 per house just like the out of towners.

Goodluck, and who knows maybe someone will get one together right and be worth while for you and everyone involved :-D

Jim:

In Bergen County, where I am, there are short sales. However not the same amount as I see elsewhere. I think your right. The commission by us must be fill in with something. I would never want to get into a hope and a dream of not just if you are getting paid, but let them decide after the deal is started, how much.

Our market is not as bad and is much more orderly. Don't get me wrong, we have them and they are a hassel. I think the only way to go is to have a buyer agency agreement and make the best deal for the buyer and get paid. If they record no specific commission in the listing then your rights to set a commission with the buyer is inforce. In New Jersey you are not suppose to collect from both sides.

Richard

Jim, good point about inexperience.  I can already hear the retrospectives in a few months, "Well, it SEEMED like a good idea at the time..."