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8 Questions Sellers need to ask their Short Sale Listing Agent

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Real Estate Agent with Texas Landmark Properties

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8 Questions your Seller should ask before listing a Short Sale in Texas

(1)  Does your Listing Agreement allow me to cancel it at anytime for any reason prior to accepting a Sales Contract?   Answer:   Yes, mine does allow you to cancel. 

(2) Does your Listing Agreement obligate me to sign if a ready, willing, and able buyer is found who offers at or above the asking price?  Answer:  No.  (Carefully read the Texas Residential Listing Agreement.)

(3) How many Short Sale Transactions have you succesfully closed?  Answer:  Answer truthfully with documentation.

(4) Can you give me some examples of your listings  that failed to close, then went to foreclosure?  What happened to cause the home not to sell?   Answer:  Okay, here are some examples and explanations.

(5) What percentage of your business are Short Sales?   Answer:  %  (Truth is always good on this one.)

(6) Describe any up front costs to the Seller?  Do I pay anything at anytime?  Answer:  No cost to you.

(7) Are you going to be showing my home and representing any buyers?  Answer:  No

(8)  What happens when my home gets foreclosed?  Answer:  You must move out immediatly. 

 

Please feel free to contribute, comment, or argue items on this list.

RC Cutcher
Realtor, ABR
512-848-4449

Texas Landmark Properties
11109 Dodge Cattle Drive
Austin, Tx 78717

www.RCshortsale.com

RC_Cutcher@Helloworld.com

The Short Sale/Foreclosure Workshop--MCE--3HRS
Course No. 03-00-100-7436  TREC Provider No. 0623

Broker Price Opinion Training--MCE--2HRS
Course No. 02-00-031-7967  TREC Provider No. 0623

 

 

Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

# 1) I always put in they can withdraw at any time for any reason at no cost.

#6) I tell them if it looks like they have a bunch of extra money lying around the lender/investor may ask them to sign a promissory note but I will never ask or expect any money from them.

Jun 11, 2010 12:39 AM
RC Cutcher
Texas Landmark Properties - Round Rock, TX

Jeffrey,

Good point about the possibility of their Hardship being scrutinized, especially an Investor.  I did have one Investor who Short Sold three properties, one after another, and he was asked to sign the promissory on all three.  His Hardship Letter was interesting.  It was two sentences saying he had some credit cards maxed out and he had trouble sleeping at night.  (Bless you Paul, and thanks for the business.)

I guess I am not as liberal thinking as you on my Number 1.  I can't let them pull out of the Listing Agreement once they have signed a Sales Contract, but that is probably a moot point, since I could only litigate for my commission if they did.  And Sellers aren't going to pay a commission on a Short Sale anyway, but some deterant needs to be in place for having a Seller just get peeved and walk away in the final days of a Short Sale. 

 

Good Stuff, thanks for sharing.  RC

Jun 11, 2010 02:47 AM