" I stay away from short sales!" Can anyone tell me why a professional would utter these Words?

By
Real Estate Agent with Beach Realty and Construction

In many markets  a good portion of the properties that are selling are either REO or short sale. About 30% of my lisitings are short sales now and I have been able to pick up 6 REO listings ( scraps form the REO fraternity) this year.  Our MLS inventory is less than 6% under contract - My inventory will be 30 to 40% under contract by the middle of next week .

It just seems crazy to me why an agent working for a buyer would "stay away" these opportunities just because of  the pitfalls that come with a short sale . Seems to me we should all jump in and get these distressed homes sold - then these agents can find something new to complain about. We are going to have to MOVE this distressed inventory over the next couple years if we want to " stay away" from them. We  have a duty to  our clients to let THEM decide whether they want to get involved with a short sale.

I would love to hear some comments on what motivates the " I stay away from short sales " talk.

I believe that EGO and laziness are two of the culprits??? any thoughts out there?

Sending a Blessed 2010 from the Outer Banks!

Comments (9)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

There are so many pit falls with Short Sales.  In our market area, only 14% close on offers for a many reasons.  The quickest we have closed is 4 weeks and the longest is 16 months.

Jan 17, 2010 02:26 AM
Mandy Buchholz
Benchmark Realty, LLC - Murfreesboro, TN

We need to educate our buyers on how long it will take for a short sale to go through. They think they understand but the stress of the months of waiting to own the home can be very stressful to them and you may lose them as a buyer.

The shorts sales we have worked have been very difficult and stressful. I think we could have worked several other deals with the amount of energy we put into one single deal.

Jan 17, 2010 02:32 AM
Steve Blaisdell
Beach Realty and Construction - Nags Head, NC
FOC

Good one!  These house are not going to be sold until we sell them - for sure .  Many lenders are finally getting with it and have systems in place to get them sold . I just processed one in three weeks ! - I am glad that many agents mindset will not allow them to work these - it helps me to sell more and UP my statistics-!

Jan 17, 2010 02:34 AM
Lisa Schmitt
Coldwell Banker Honig-Bell - Plainfield, IL

When I have the first buyer interview with a new client, I discuss short sales and REOs & then let the CLIENT decide if they want to go in that direction. Many buyer clients simply do not have the time to risk/wait on short sale approval.

As for the agents who won't touch short sales: I think there could be several reasons for that. One being that they are afraid to navigate the process (though really, as a buyers agent there isn't that much to navigate, unlike the listing agent). Or maybe they don't want to wait months and months for a (possibly reduced) paycheck.

Jan 17, 2010 02:48 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

In most cases it is the buyers who want nothing to do with them -- in our market less than about 16% of the short sale homes that get contracts on them ever close -- and the ones that do take months and months -- so if a buyer needs a home in the next 30-45 days these properties do not offer any assurance that the time frame will happen ----- for buyers without a timeline to get in a home, short sales can often times work. All the best in your market.

Jan 17, 2010 02:54 AM
Ross Quintana
Real E Smarter - Spokane, WA
Real E Smarter Real Estate Coach - 509-362-1966

Yeah, one of the big problems I warn about is the emotional roller coaster. Sometime it can take 2 weeks to 2 months to get a response. Buyers who need to close by a certain time can get tied up only to have their offer rejected or beaten by another that came in after theirs. Most homes are as is and this also doesn't work for some people. If you have a deal that takes a long time and then they lose the house this can sometimes cause them to stop looking or go with another agent even if you didn't do anything wrong. There are a multitude of reasons BBank deals can be a wrong fit. For some they are good, but it is a different process and timetable and situation with the home and negotiations. Many of the contracts required are also way slanted to the banks and have the buyers giving up rights they had with regular homes.

Jan 17, 2010 02:55 AM
Steve Blaisdell
Beach Realty and Construction - Nags Head, NC
FOC

Good one Lisa - it should be the BUYER deciding not the agent!!

Jan 17, 2010 02:56 AM
Lisa Schmitt
Coldwell Banker Honig-Bell - Plainfield, IL

And to take off on that Steve, it probably depends on what your market looks like. My market has an oversupply (mix of short sales, REOs and traditional) so most of my buyers can avoid short sales if they wish.

Jan 17, 2010 03:08 AM
Steve Blaisdell
Beach Realty and Construction - Nags Head, NC
FOC

Ross - good info-

The question was this- "What motivates an AGENT to stay away from these ? To me it's not up to the agent but up to the Buyer or seller to decide if they want to get involved w/ the short sale process.

Jan 17, 2010 03:12 AM