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Pet Peeve #3: We are our own worst enemy

In my neck of the woods, short sales and foreclsoures make up 70% of the market. Short sales are 90% of that. So you either learn them and do it right or you will starve. Pretty simple right? Well we happen to have the smartest agents in the world right here in Miami-no really. I'm serious. You see their logic is to actually convince their buyers that short sales are bad and that you will make an offer wait and wait then it falls apart. Here is a true converstaion this week:

Agent: Hi I'm calling about the property in Homestead.

Me: Are you an agent?

A: Yes.

M: Do you want to show it because its on accushow like it says in the MLS so you have to call them.

A: Oh I didn't see that, oh well is this a short sale?

M: Yes (The MLS also states this, plus you can exclude them in your search.)

A: Oh yeah may buyer had a bad experience so she doesn't want a short sale, is it pre-aproved short sale?

M: No but i specialize in short sales and it will take about 30-90 days did you tell your buyer that?

A: No, but she doesn't want any.

M: Well that's all that is available are short sales and foreclosures and you know most of the foreclosures need work.

A: Yeah I know. (Then a long silent pause)

M: o k bye

A: bye

I kept waiting for her to tell me something like well let me try and convince them that this property is worth a shot, but nothing. Sadly this is not the first call I have gotten like this. All the agents are steering their buyers from short sales because they are afraid to get burned and understandably so. How is the market going to correct if we keep letting the inventory sit instead of doing what we are supposed to.

If you know more than the selling agent, go ahead and hi-jack the deal and help with the short sale package and get the darn thing sold. We as agents really need to work together now more than ever.

Noel Padilla

Kendall Short Sale Foreclosure Specialist

Posted by Noel Padilla, CDPE on 09/01/2008 08:03 PM

Comments (10)

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10 Comments on Pet Peeve #3: We are our own worst enemy

SEP

2008

The market has changed but not all the quality of the professionals in the business have changed with it. The reality is to be a professional in todays market place once must continue learning and changing approach to the market. At all times being the educater of the prospects as well as the other agents in the business. Take control. Call her back and educate her. That is the key. Work yes but worth it. Just my thoughts

no offense but I think both sides of this conversation is sad and lacks an interest to sell the property.... if an agent takes te time to call - even if they are asking questions they could find on the mls they are seeking info on your listing instead of someone elses - a bonus for you..... we do not have some of the showing companies other areas have - but if I had received your response - I would not bother you again... and that could be one less sale -

Its not a lack in interest to sell the property, its a lack of interest in dealing with non-professionals day in and day out. I read an MLS 2 or 3 times before I call. I only call when I can't research and get the info myself. The start of the conversattion should have been: I know it says so and so in the mls but i have one question...... Its bad enough I have to repeat things for my children and now adults too? Come on, this why our industry is the way it is, there are rules that no one seems to think apply to them. Heck the entire country is getting that way. (The converstion was edited it was alot longer and I did try and convince her otherwise.)

Maybe it's just a pet peeve of mine........

I think I have to agree with Thesa...here was an opportunity for you to SELL and EXCITE that agent about the property whether it's a short sale or not but instead you just gave curt answers. People sometimes don't know WHAT they really want. If the conversation went this way, you made not have made the most positive impression as far as being someone helpful and cooperative to work with throughout a long and sometimes torturous transaction like a short sale.

All the Best!

SEP

2008

Yes I was a little curt, I'll have to work on that but sometimes it's hard to be patient because you want to give your clients the best. It can get fustrating to hear people basically say to you, "I'm not showing your listing because I don't want to bother with a short sale." I know it has nothing to do with meas an agent it's just ignorance and I can only educate so much. I also had an agent tell me his broker told him not to bother with short sales because if the owner is not behind on payments it won't get approved. I tried in vain to convince him otherwise, but after all his broker told him so.

On another note,I still haven't got any feedback on why we as agents keep steering clients away from short sales. I have not received any valid responses or reasons why agents keep calling me and telling me they don't do short sales, all the while that's all there is. How are these people eating?

I personally inform my buyers up front about the possible outcome of a short sale. I also tell them that the properties are usually in way better shape and a better bargain than foreclosures because no work has to be done to fix them but they should keep all options open. You have trade offs. I let them decide. I thought steering was illegal, regardless of the reason. Steering is steering whether it's from a blighted neighborhood or from a short sale it's all the same.

SEP

2008

Noel, Take a deep breath, it is a difficult market. Southern California is similar to Florida so I feel your pain!!! It is a really difficult market for everyone involved. You are doing something right or you would not be getting those calls at all. :)

I have to say that every lender I have dealt with has said that the Seller has to be 90 days behind in payments before they would even look at a short sale package. It is very discouraging, to say the least. I do tell my Buyers about what to expect when making an offer on a short sale, but I also convince them to keep looking and pursuing other options. Frankly? It takes me less time to write and email an offer, after the first one, than it takes them to sign it. For them to wait even 90 days for a response? Talk about a deflating balloon!!

Sorry, Noel, but I agree with the other posters that said that you could have convinced this agent to take her client to your listing. And despite your statement that you want to give your clients the best, you have kind of done the opposite. Frankly, it would be easy to convince me to take my clients to your listing with some compelling reasons to do so.

For example, you could say that your seller has already completed his short sale package and it is ready to be submitted as soon as you receive an offer. You could explain all the work you have done, as a professional, to be confident that it would take 30-90 days, unlike the other goofballs. You could tell me that the second td holder has signed off on the property so that we will only be dealing with one lender. You could tell me that you have closed a short sale transaction with this lender and that they will get back to me within 10 days. etc., etc.

I'm in California selling real estate full time as my only household income for 25 years and this is my third time in a market like this. The problem in SoCal is that the bull market in housing has gone on for TWELVE years! That means if you have been selling homes for 10 years, you really haven't experienced a market like this. Experienced agents are floundering and struggling with all of this.

You might have used your selling skills to convince this agent that your listing is different and better than the rest of them. I know I am picking on you, but I am also frustrated with short sales. Hate me if you want, but for heaven's sake, if I call you and throw up a few objections, just answer them honestly, respectfully and encourage me to take my clients there. That's what you would do if I were calling you on a home that backs up to a busy street, right?

SEP

2008

Yes i did make an attempt, I have to do better at paraphrasing the conversations I have on the phone. I told her almost exactly the same things you said, except for the pre-approval part and I havent dealt with that lender in 10 days (i dont want to fib). I even through in my designation that deals only with distressed properties and "I will get this to close." and "That's because those agents probably didn't know what they were doing.

And no you are not picking on me, that's why i love blogging. It lets me know my flaws and if I am on the right track. I gues with this one I was somewhat on the right track. Thanks to all of you.

Short sales take a lot of work and coaching to sellers and buyers - even with my limited experience in short sales, I have learned this. Short sales are very new in our market and even though they are becoming more rampant...they are still new and local experienced Realtors here are adapting to and educating themselves on the short sale option/process.

Personally, I think we need some sort of regulations governing short sales - if this is in place and I have missed it then please, by all means, direct me to where I can educate myself on the what is being done to help the short sale process. With admitted lack of experience in this area, I just have observed and listen to others talk about so many inconsistencies between lenders and the way they handle short sales. It seems to me that this is leading to most of the frustrations.

I hope that we can see some positive change in short sales soon - I will continue to keep working on them for buyers and sellers because I have personally witnessed the deals a buyer can get and the relief offered to a strained seller. In this market, that we are working in, I hope that the short sale process will improve and that short sales will do their part to help make are real estate markets and clients financial positions healthier.

SEP

2008

And what is their choioces? To haul the buyers around, showing them houses that are over-priced compared to short sales, that sit on the market 6 months to a year. Hey, gas must be cheaper in Southern Florida! What are they thinking? short sales may be a pain to process but you can close them so much faster than sitting around waiting for a buyer...

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