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Noboby wants to show a short sale listing...Huh?

By
Real Estate Agent with Southeastern Realty Group

I had two agents call me yesterday wanting to show a couple of my team's Atlanta area short sale listings.  Both immediately had negative things to say and refused to show as soon as they found that they are short sales. 

I believe in full disclosure, transparency, and setting propert expectations from the start.  So, we have all agents call before showing. We let them know exactly where we sit in the process, our team's short sale track record, and any lender specific time-lines we know to expect.  We also share the comparables and property condition information used to establish the list price.  We do all of that so that everyone is fully prepared for the process - no questions!  It is necessary to weed out and screen buyers that will not perform, or will not be able to stick with it.

For these two listings: The list price for both properties has been set with full comparable evidential support (no playing games in our office), the lenders are in agreement to consider short sale offers, and the homeowners are willing and ready to do whatever is needed to ge the process rolling.  Buyers have an opportunity to get a property for a great price should the Sellers accept and the lien holders approve.

Now I would understand if a Selling Agent refuses to show a short sale for a legitamite reason:  the buyer has to move right away, the buyer is re-locating and needs to lock in a closing date, the buyer wants to lock-in an interest rate that will expire in 30 days if they don't close........ Hey, those are real reasons not to put in an offer on a short sale.  Yes, short sales can take longer than a standard transaction and there are other risks associated.  BUT, the reasons these agents wouldn't show these short sale listings stemmed purely from a personal hatred of the short sale process.  Their buyers didn't care about time-lines, but their agents did!

In this market - you cannot avoid short sales entirely or you are preventing your buyers from seeing what could be a great deal that they may be willing to wait for.  Not all short sales take a long time - especially if they are listed by an agent or a team that specialized in the short sale process.  Our team has a 90% closing rate which is 70% better and 50% faster than the national average.  We will work hard to get the short sale approved for buyers.  By doing that - I am creating a WIN-WIN for everyone.  The homeowner in  distress gets out of a bad situation, the buyer gets a deal, the neighborhood avoids another vacant low-priced foreclosure.

We hear every objection you can think of - and sadly many of them are from the agents entirely:  I need a closing right away, I need the money and I don't want to wait for months for a commission, I don't want to give up any commission (some is better than none), I only show perfect houses so the deal won't fall apart later,......I've heard it all.

So for you agents that avoid short sale listings, let me give you a few reasons to do it anyway: Short sales can be a great opportunity to get a home for a great price, are generally in much better condition then a vacant foreclosure, sometimes have proactive owners that will still offer repairs and home warranties......AND lenders are becoming more and more open to allowing FULL "standard" commissions, 3% seller concessions, repair allowances, and are even allowing the Seller to pay additional closing costs....You would be surprised!  Just be sure the listing agent is good at the process or suggest that the listing agent work with a loss mitigation team that is. 

More agents need to open up to the idea of short sales.  Nearly 60% of all closed transactions this year will involve some type of negotiated purchase.  Short sales cannot be avoided. 

If you are a listing agent comiserating with me now - I would love to know what you think about the new short sale web-based program MANAGE MY SHORT SALE.  It was designed to help more of us take the market by the horns and make short sales systemized and more profitable.

Thank you for letting me complain - Please share your short sale tales.

 

 

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Comments (11)

Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Amy, it's all in the details.  If I've got some one that needs to move quickly, short sales are out.  Some one with time and patience, no problem.

Mar 29, 2009 11:21 PM
Mark Watterson
Salt Lake City, UT
Utah Real Estate

I have no issues showing short sales.  Sometimes they don't fit the client expectations.  I do get calls all the time on my listings and when they find out it a short sales they are finished talking. 

Mar 29, 2009 11:34 PM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Amy... I can see both sides of this transaction, The reluctance of buyers agents to involve their clients in a transaction that is so open ended. If you pass on other available properties to attempt this purchase and it can't or doesn't move forward. Then the buyer agent is looking out for their client. At the same time we have a responsibility to sell current inventory, for our clients.

Mar 29, 2009 11:36 PM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

Before I show a short sale I advise my clients that it is a short sale and that all offers are subject to 3rd party. Before that I see if the listing agent has it together. If not I dont show it.

Mar 29, 2009 11:53 PM
Amy Ransdell
Southeastern Realty Group - Kennesaw, GA
Atlanta Short Sale~Short Sale Daily News

Gabe: Could not agree more.  We all must meet the needs of our clients.  But that is exactly my beef - our job is to meet our client's needs and not be worried first about our own. 

Mark:  When agents call you and 'quit' talking as soon as they find out the listing is a short sale, do you ask why?  We are always surprised at how many agents respond with their own distaste for the process and nothing about their buyer's needs.

Steve : I agree! Reluctance can lead to low buyer performance on a short sale.  So, we are often 'reluctant' to allow our seller's to contract with a 'wiggy' buyer.  However - agent teams that are have high success rates with short sales can make buyer's drop their reluctance and look forward to a much more pleasant means to a "great deal."

Laura:  Smart move to not work with LA that cannot get it done.  Did you know that you and your buyer can require that the LA work with a loss mitigation group that has a good closing percentage as part of your offer?

 

Mar 30, 2009 12:00 AM
Frank & Jodi Orlando
Frank & Jodi Orlando Get Us A Home Realty Atlanta Homes Sale - Cumming, GA

I agree with Laura, there are some agents out there that are clueless when it comes to a short sale. Our last short sale offer was with a listing agent that has never sold a property! 10 weeks before a response, hello, closing date was 1 1/2 months ago!!!

Mar 30, 2009 12:11 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Short sales can be a challenge but if everyone goes in with the right expectations and preparation  then the chances of success are high.

Mar 30, 2009 12:23 AM
Debra Kukulski, Broker Associate
RE/MAX Suburban - Cary, IL
SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

I agree that short sales can be a challenge from both sides.  But it depends on the buyer's situation...their patience and time frame.  When I sit down for a consultation with my new buyers, we go over all of this and  I explain up front the pros and cons of considering distressed sales and we come up with a plan of action that either includes them for consideration or not.  All we can do is advise our buyers and help them obtain property that meets their needs and deadlines.  I also like to try to talk to the listing agent prior to showing a short sale, if possible, like Laura Jefferson stated above.  Some agents really do not know how to successfully close a short sale and you really do need to know what you are doing or your transaction/offer just gets lost in the shuffle.

Mar 31, 2009 02:50 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

I will show what ever my client wants..Do not care if it is a bankruptcy or foreclosure...

Apr 02, 2009 08:12 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Amy - Seems like you have your act together on short sales!  I find the problem in my market (I am primarily a short sale listing agent) is that other listing agents have flubbed deals for the buyer's agent.  I believe the key to a short sale approval IS the listing agent.  I think if you just hang in there, you'll get better quality buyers from better agents who understand your success rate.

Apr 02, 2009 03:01 PM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Amy - Additionally, as for short sale management, I use ACT.  It is a contact management database that can be customized by the user, formatted for any field you want, note taking, date reminders, etc.  I have used ACT many years for my real estate business and love it.  It can be networked, etc.

Apr 02, 2009 03:03 PM