Short Sales-Think About The Big Picture! Can You Really Sell This Property?

Midori the picture you have painted here does not look good . A seller committing fraud is a very big no no. I can see why you would want to stay clear of that.

Midori:  Short sales require some very specialized skills and business systems.  For an agent/broker to be successful at them requires plenty of knowledge, skill and networking, plus the intuition that you mention to ferret out sellers that will pull you into a situation that may damage your reputation or worse.  I have been VERY reserved about seeking this business because I have seen so many agents waste their time and worse, giving a seller false hope. 

I think that what I'm hearing is most of the people I talk to just want out and don't even want to try to apply to modify but they also tell me when they call they are told they can't anyway...I'm not taking on anymore right now and definitely ones with two loans with two different lenders...wast of time. Your story sounds a bit strange to me as well.

Midori - there have been many turned downed and unfortunately from previous clients. When the words enter the conversation, "short sale and foreclosure", it's an uphill battle in my opinion. The marketing involved, time invested and uncertainty of how the lender is going to cooperate or not cooperate is a pretty clear picture for me. I feel horrible for those homeowners in this terrible predicament, it breaks my heart. Now add 'one' discrepancy and it's a clear path to a "Sorry, I can't help you"... You did the right thing!

Midori, I'm being selective on listing any properties, short sale or not.  Last month, I was approached by someone and asked to list a house.  The seller had taken a $60K home equity line out to "go shopping". I'm not kidding. No, that money was not invested back into the house.  So, she owed $60K more than the house could possibly sell for.  I suggested we try renting it out.  She said that would be too much trouble and just wants to give it back to the bank.  I'm not taking overpriced listings anymore, just to see what happens.  That is a waste of my time, energy and marketing money.  I want listings I can sell, not ones that will drain me. I suggested she contact someone else.

I have a couple short sale listings right now, but I talk to a seller the other day who had two different homes to sell and they were not in good shape at all. They thought sinced they had owned them for a while that they should be able to sell them at market value, plus they are not in the best area, so I did not want that listing.

I new to short sales, and I am learning as much as I can about the process, but my gutt just told me that I would have a hard time getting those homes sold. Thank you for sharing.

You seem very knowledgable in this area, please check out this post What is the right way to work short sales?, your input will be greatly appreciated.

Midori, I too turn down short sale listings quite frequently. The number one reason is their hardship. If it ain't legit I move on. I also won't list a tenanat occupied property or one with 2 mortgages from two different lenders. In this market we have to chose our business wisely.

These short sales are the bane of our existance.

We had a home listed in MD at a good price for a semi luxury home.  The onwers were not behind in payments but knew she had to sell.  The house had been vacant for over a year. 

Then, BOOM, another listing, same square feet, same community, same lot size, etc. came on the market for 2/3 the price. 

We rented the home. 

They'll lose a few hundred every month and hopefully they can sell next year. 

Midori, while I'm not a realtor and involved in selling homes, I just had to say I like your style.  I think nothing beats being honest with a client or potential client and providing them advice on things they can do but not fooling them or even yourself by taking on something you just know you can't provide the services they are looking for.  It shows you are a true professional!  Thanks for subscribing to my blog - I look forward to corresponding with you! Have a great day. ~ Anne Marie

I know hundreds if not thousands of real estate agents who would not turn down short sales even though they don't have a clue on what they are doing. Like you said,you need to get the sellers to talk to you probe.... Thanks for sharing this post. And thanks for accepting my Twitter invitation. I am still learning about Twitter. Great post.

Your choice was the wise path to take. If you see no logical way you can sell it...you are not doing yourself or the owner any favors. In a way...placing the home on the market is just an act of desperate, false hope. Additionally...some banks will require the home owner to place the home on the market before they will work with them. I don't understand that mentality...but hey...what do I know? GBU!