Ten Mistakes to Avoid When Doing Short Sales

Short sales are thrilling transactions. In a short sale, the homeowner sells a property for less than what is owed. The remainder of the debt is forgiven. The key to being successful at this is in being a dedicated professional. Professionals know what to do and what to avoid. These are the top ten mistakes to avoid.

1. Not knowing the business. To attempt a short sale without knowing what to do is simply wreckless. Unless there is plenty of help, most likely the transaction will fail. Not only that - this is disrespectful of the client and brings a bad name to the business.
2. Not understanding the foreclosure process. Each state has its foreclosure rules. In most states, there are two types of foreclosure, each with its set of rules. To be effective in short sales, it is critical to dominate this subject.
3. Not knowing the legal boundaries. In real estate, for the most part, the law is broken unintentionally. However, regardless of good intentions, the law is unforgiving of ignorance.
4. Working with unmotivated clients. Short sales require full cooperation from a client who understands the benefits of the transaction. Attempting anything with unmotivated clients is a waste of time.
5. Not being selective about transactions. Not all transactions are viable. Viable transactions have a reasonable chance of success along with a profit congruent with the effort and risk. It is better to have a few well-selected transactions than many random deals.
6. Not walking out of a transaction when it is not working. Any negotiation in life needs to have an alternative. A short seller must always have the alternative of walking away if more convenient. The instant the walking away is not an option, negotiations end and asking for favors starts.
7. Not having the right team. Short sales are not a solo game. Good connections are must. These include title companies, mortgage brokers, building inspectors, attorneys, etc. There are plenty of competent professionals eager to contribute. It is not hard to find compatible teammates.
8. Not explaining well the process to others. This has to do with fear to the unknown. Not knowing what has to be done or will happen is scary. Clients will be a lot more confident and comfortable when understanding matters.
9. Not being win-win. For any transaction of any kind, unless there is no other choice, everybody needs to benefit. When people benefit, they make things happen. The benefits need to not only be real. They also need to be perceived as such. For a client perception is reality. A client that is not fully convinced of the benefits cooperates less. If it matters do not improve, the client may withdraw from the transaction.
10. Being too greedy. Too much greed is real estate's enemy number one. Wanting just a little more than what works often results in loss of great opportunities.

Short sales are professional endeavors. As such, it is just as important to know what to do as well as what to avoid. Avoiding the top ten short sales mistakes will result in a much more prosperous short sales carreer.

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