GOT TO GET IT OFF MY CHEST! SHORT SALES - UGH! TO SHOW OR NOT TO SHOW - I WAS WRONG!

SHORT SALES. . . .  The below was inspired by Mike Jones post this a.m. about financing and short sales. 

TO SHOW OR NOT TO SHOW????  

SHORT SALES. . . . They are the bane of our existence.  We work with very, very good buyers.  Buyers who are qualified, motivated and cooperative.  If they were not, we wouldn't be working with them.  My time and the  time of agents and brokers in my network is very valuable and we don't waste it on unqualified or unmotivated or uncooperative buyers.

Yet, a high percentage of the listings available in our MLS of ACTIVE listings of homes for sale are full of short sale listings which, SHORT SALE, is a barrier to sale.

Any buyer who is seriously interesting in buying a home with a predictable closing date should pass on short sale listings. 

Sadly, there is no assurance that any logical, accepted, professional or helpful real estate practices will be followed by the bank which must approve the Contract of Sale OR THE AGENT LISTING THE SHORT SALE. 

In the past, I have criticized agents who refule to show SHORT SALE listings. 

I APOLIGIZE AND RETRACT THAT CRITICISM.  YOU WERE RIGHT.  I WAS WRONG!

Sadly, the cause of this poor image for short sales is not all from the banks.  The listing agents appear to take the opportunity of having a short sale listing to indulge in the worst, most unprofessional and unhelpful practices exhibited by real estate practitioners.  Such poor practices are usually  found only in newly licensed agents who don't know better.  New agents often procrastinate in responding to events involved in a transaction because they don't have the knowledge or experience to know what to do.  New agents do not always understand that timely responses are helpful for their clients because they get contracts to the settlement table.  New and inexperienced agents can be given some room to make poor choices in how to navigate short sale transactions.  However, experienced, seasoned agents can't make any excuses and have to take responsibility for the sad state of short sale transactions.

Sure, the banks take a long time to do whatever it is that they need to do.  Banks don't know how to sell real estate.  Experienced real estate agents do, or should. 

Sadly, even very experienced agents appear to be using their short sale listings to treat buyer's agents with contempt.  Yes, contempt.  The behavior of far too many short sale listing agents reflects poorly on our industry as a whole and particularly on short sale listing management. 

WILL WE CONTINUE TO SHOW SHORT SALE LISTINGS??  OF COURSE, THERE IS NO ETHICAL CHOICE.  However, we will, if we are smart, give our buyers good counsel about the time and frustration involved in attempting to buy a short sale listing. 

When we advise our home buyers that there are no rules, no standards for short sale contracts on the part of banks, that will be only a part of the reluctance to show and sell these listings.  We will also give fair warning to our home buyers that the listing agents may not be helpful in navigating a short sale purchase. 

• The listing agents may not return phone calls, e-mails or fax messages. 
• The listing agent may not be knowledgeable about the short sale procedures of the lender for their listing.
• The listing agent may not present in a timely manner all offers and counter offers.
• The listing agent may try to excuse their unprofessional and/or unethical behavior on the fact that the listing is a short sale. 

The listing agents may appear to discourage offers for the purpose of waiting for buyers they can write themselves.  Shhhhh. . . .  it happens. 

ALL TOLD, short sales are far more difficult for home buyers and their agents than they need to be.  If short sale listing agents were more helpful and communicate better with selling agents, we could be WORKING TOGETHER to move these properties.  Sadly, the listing agents appear to work in the interest of no one, not the seller or bank and surely not in the interest of the contract.

The above represents the experiences of 9 seasoned buyers agents and buyers brokers attempting to sell short sale listings for the past 18 months.  Our success rate is about 30% which doesn't encourage us to show short sales.  Most of the offers simply die on the vine with no acknowledgment from the listing agents. 

Sure, we call, we e-mail and fax messages.  We may hear back in a week or two or three. 

THAT IS NOT THE WAY TO SELL REAL ESTATE.  THAT'S THE WAY THE BANKS OPERATE.  BANKS ARE NOT A GOOD EXAMPLE TO FOLLOW.