Should you be your own negotiator on a Short Sale?

By
Real Estate Agent with Keller Williams Partners

You know, the thought had crossed my mind to be a negotiator on one of my short sales.  But my assistant strongly discouraged it and I listened.   Thankful I did!

Recently I was the buyer's agent on a Short Sale.  It was the most stressful deal I have ever had.  The seller's agent decided to be their own negotiator and the deal almost fell through many times.  We were sitting at the closing table on New Years Eve, we were suppose to close at 2pm.  We are on the phone w/ the banks customer service department trying to get the "acceptance letter" that we should of had the day before.  We finally closed at 5pm.  If the lender on the buyer's side and I had not been in the room coaching them what to say, we would have never closed that day.

I feel there are a few factors that would have made this process go much smoother.

-Have experience in real estate before attempting to negotiate a Short Sale. Sellers agent should have had more experience in real estate before attempting a short sale on their own.  Bless their heart, they didn't know that an appraisal and BPO were not the same thing.

-Know what documents are needed in the short sale process.  They didn't have all the documents together for the package to the bank.  The bank had to keep emailing them for more documents.  Where if they would have had them all 'then' submitted they wouldn't of had to email them, it would have been approved quicker. 

-Have a managing broker that knows what they are doing.  The managing broker felt that you could close on a home w/out the acceptance letter.  WHAT???  Atleast that is what they told me he said.

-Take classes on the short sale process.  I really feel if you are going to being working on short sales, you better take the classes to get the knowledge of the process.  I think everybody that is a realtor should get that education.  We are all going to be dealing w/ short sales for the next 5 year atleast. 

-Be a full time real estate agent.  The realtor I was working had a full time job outside of real estate.  They had limited email and phone access during the day. They worked 8-5, same hours of banks. So the banks could not get ahold of them and phone calls were missed.

-Bottom line, they should have used a negotiator.  Negotiators have connections at banks, they know the process and how it is supppose to work.  They know how to word their conversations to make things happen.  It is worth every penny.

 Please feel free to add your thoughts.  Anymore thoughts on what to do and not to do with short sales. 

Comments (3)

Carol Lee
Dilbeck Real Estate - Oak Park, CA
Realtor - Agoura, Oak Park, Westlake CA Homes

A realtor with a working FULL TIME OUTSIDE REAL ESTATE doing a short sale listing?  OMG.  S/he shouldn't be doing any listings, but especially a short sale, especially with no idea of what to do.  Glad to hear you closed!

Jan 02, 2010 06:26 AM
Brooke Shepherd
Keller Williams Partners - Colorado Springs, CO
Speak With Honesty~Act with Integrity

Thank you Carol, I felt the same way!

Jan 02, 2010 06:27 AM
Guy Thomas
WR Starkey Mortgage - Colorado Springs, CO

NO question on this one. And part time to boot. I am glad you held it together for the closing. With all the reputable Title companies and other negotiating outlets, I am not sure why anyone would want to go through this on theri own.

Feb 17, 2010 09:17 AM