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First Step in A Short Sale- Listen!

By
Real Estate Broker/Owner with Sherwood Property Investments

 

Listen to What Your Short Sale Client Needs!

This does not mean that you are getting consumed by their needs when you work their Short Sale. It means that you remember to listen to what matters to them. Is it, for instance, where their children go to school? Or avoiding foreclosure so they can begin to rebuild their credit? Or keeping their favorite chandelier?

One of my clients biggest concern was avoiding a public notice of a foreclosure auction in their local paper. Their son had a couple of months until graduation from the local high school, and they did not want him to be embarrassed. Once he graduated they would move, and it would be a nonissue to them. Once I knew what was most important to them, I could help them meet their goal - and make money doing it.

A young man wanting to start doing short sales and having some difficulty recently asked me to join him on a meeting with a potential client for a short sale. He requested that I give him feedback to help him become more effective. I found that a challenge to do in a nonoffensive way! Here is what happened on the call…

As the homeowner was trying to talk about her situation, he interrupted her repeatedly with talk about his own goals in life. He was so far off her wavelength, I was not sure how to bring him back. I was amazed that anyone could be so focused on what he wanted that he could miss completely what another person was saying.

What I did was I asked him why he was in this business. He said it was about his making money and building his investment portfolio. I told him I understood he was in this to make a good living. And then I told him that he needed to think about what was going on for the potential client, their distress, their pain, their needs. And the lights went on for him. He understood that when he was with them, it was about them and their situation and what he could do for them. That they did not need to know - and did not care, did not have the emotional room to care - what doing their short sale would mean for him and his family.

I know that you are in this Short Sale business to make money, sometimes very large amounts of money. I know this is not a charity project! To do that, you are performing a service that impacts peoples’ lives in very fundamental ways. And our clients have to invest in the process, to give us the information we need to help them. We need to listen to and provide a service that meets our clients’ needs in order to be successful at short sales.

Gary Burleson
Beach Water Realty - www.beachwaterrealty.com - Myrtle Beach, SC
Myrtle Beach Homes, Condos, Foreclosures, Investment Propery

Great advice. In today's environment, as in many areas, the more you help someone, the bigger the payback to you.

Sep 07, 2010 04:02 AM
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

There are too many agents that are "all about the money". They can't seem to see past that to determine what it is that the clients needs and wants. These items must always come first and then the money will follow.

Sep 07, 2010 04:41 AM
Deborah Grimaldi
Grimaldi Appraisal Services - Cranston, RI
(401) 837-9633

Hi Annie,

 

Good information, there are just so many short sales going on in our MLS that every other seems to be a short, the more knowledge on the subject, the better off we are. I just learned that 3 lien holders were on a property my buyers were trying to purchase, had we known this right away, we would have never put in the wait of 5 months and still no answers.

Sep 07, 2010 05:00 AM
Tatyana Sturm
Exit Realty DTC - Aurora, CO
Denver Realtor, GRI, Denver/ Aurora CO Relocation

I listen to my short sale clients, but sometimes it easy to get consumed in thier issues, it best to stay on track

Sep 07, 2010 05:15 AM
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

Ah, duh! We cannot help them if they think we do not care about them & their situation.  That is all that matters to them at this time.  We need to hear that first, then tell h=them how we can help them.

Sep 07, 2010 05:23 AM
Tom Waite
Thomas Waite Real Estate Broker - Cypress, CA
So Cal-Apartment Bldg Investments

2010-2011 will be the era of Short Sales...get used to it.

 

If nearly 25% of the homeowners in the USA are within 10% of underwater or completely underwater (Commissions and costs will more than eat that up) then Short Sales are the thing of the day.

Sep 07, 2010 05:47 AM
Al Kernek
Pacifica Endeavors LLC - Carlsbad, CA

Short sales can get sticky real fast.  The better you are at listening to your clients, the less likely you are to step on a land mine.  I cringe at the prospect of how many lawsuits are oming down the road for agents that remain blissfully unaware of the pitfalls involved in short sales.

Sep 07, 2010 05:53 AM
David Lee ~ Orange County, Ca ~ Cash Flow Specialist
United Realty - Garden Grove, CA

I agree with Tom. Short sales are here to stay for a few more years in my opinion. Great post!

Sep 07, 2010 06:23 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I think a lot of those lessons apply to more than Short Sales in this business.

Sep 07, 2010 07:25 AM
Robert Amato
Bob Amato of Empire Home Mortgage Inc - East Meadow, NY

Annie,

 I believe that on a listing presentation it should always be about how you can help the client achieve their goals. Whether it be sell the house to move on or get out from a bad situation. It should never be about you, you you. You did a service to this new agent by being upfront and honest with him and he will respect you for your honesty. 

Sep 07, 2010 08:28 AM
Larry G. Williams, Stockton/Tracy/Lathrop/Manteca
Home Buyers Realty - Stockton, CA

It's all about the client; not us the Realtors!! One of the first questions I ask is "Do you want to save your house or save your money?" If they want to save their house, I help them attempt a loan modification even if they have been turned down by their lender.  Sometimes, I find the clients are working with collections, not home retention departments. As Annie writes:"Listen to the client"! Great post!

Sep 07, 2010 08:31 AM
Eva Marin
Glass House International Real Estate - Tempe, AZ
SERVICE - EXPERIENCE - RESULTS!

Great post with good advice. Listening to every homeowner's needs is one of the most important parts of working with them.

Sep 07, 2010 01:21 PM
Karen Walls
REMAX NEXUS - Birmingham, MI
The Walls You Deserve!

Great Post!  It also helps,  I find to provide reading material or a post as to what is entailed in a short sale, it generally opens the conversation up to the point the client's concerns are touched on which can drive the conversation to the client's wants and needs without getting off track!

Sep 07, 2010 03:32 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Short sale or normal sale - listening to your client's motivation is vital. Just as I harp about your marketing being "about them" your conversations should be all about them.

They aren't being rude when they don't care about you. They're hiring you to do a job for them and they need to tell you exactly what that job entails. Then you have to decide if you can / should take the job.

Sep 07, 2010 06:10 PM
Annie Collyer
Sherwood Property Investments - Haverhill, MA

Great Comments!  Thank you.  We have to remember we provide a SERVICE that we get paid for!  As aggravating and detailed as a short sale can sometimes get!

 

Sep 07, 2010 10:28 PM
Ginger Moore
Wilkinson & Associates Realty - Gastonia, NC

Yes, listening  is a great attribute.  We must focus on what the client needs. nice blog, well said! thanks for sharing:) congrats on feature!

Sep 08, 2010 12:54 AM
Anonymous
Amy Donley

Selling a home can be stressful with added stress for someone in financial crisis.  The key is to listen to their concerns and provide plenty of feedback. Communicate with them often.

Sep 08, 2010 01:32 AM
#22
LeRoy Houser
LeRoy Houser Seminars Inc. - Chester, VA

Excellent advice.  We all need to remember that loosing a home is a life changing event any way you look at it, and protecting a seller from as much pain as possible is a part of what we do.  Short sales are the last step before you-know-what,and knowing their concerns has a major effect on the process. The best way to help the most is to listen more that you talk.  Sometimes I need to take my own advice.  Thanks for the post!!!!

Sep 09, 2010 08:24 AM
Elliott S. Topkins
Topkins & Bevans-etopkins@topbev.com - Boston, MA
Massachusetts Real Estate and Title Atty

Annie--This is an excellent post, and short be required reading for people doing short sales. My law firm now has developed some expeertise in dealing with lender and trying to get non-foreclosure solutions for people in trouble. Our major thrust is to try to get someone in Lender management to understand the plight of the people involved. Many do not seem to care. They have no real goals; so they cannot understand how very bad it is to be helpless.

Short sales wil eventually pull us out of the doldrums we are in. The process is not easy, for anyone involved,

Sep 10, 2010 11:59 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Annie-So what happened on the case where you went on the listing presentation with your colleague? Did he get the listing assignment even though he did not seem to be on the same wave length as the client?

Oct 03, 2010 03:18 AM