Why Your Short Sale Broker Matters

Short Sales Are Not Rocket Science

Short sales pose some challenges that are different from non-short transactions, but they aren't as wild and crazy as the general concensus makes them out to be. Slowly but surely the lien holders are getting a little better organized in their processing of short sales. Equally slowly but surely more real estate brokers are refining their processes for handling short sales and gaining experience with a variety of lien holders' processes. The result is that short sales are becoming somewhat more predictable when handled competently.

The Short Sale Broker Matters

I recently showed a number of properties to a cash buyer, who settled on two essentially identical properties in the same development as their favorites. The only question was which one to make the offer for. Each would be a short sale. Understanding the short sale process from the perspective of a short sale listing broker, my advice to this client was to make an offer for the property that was listed by the listing broker with a track record of closing short sales, and not the property listed by a broker who had no previous short sale closing experience. The relevant experience and inexperience of the respective listing brokers made the difference between a sale for one seller, and no sale for the other, when all else was as close to equal as could possibly be.

A Probability Is Not A Guarantee

Although a listing broker with experience closing short sales improves the probability of success, there is no guarantee of success. There still are factors that are outside of the listing broker's control that can cause a short sale to fail. However, the experienced short sale broker is more likely to have dealt with more such issues up front, leaving fewer potential bombs to blow up along the way. The higher probability of success is significant.

Third Party Short Sale Negotiators

After having successfully closed short sales both with and without third party short sale negotiators, it should be said that any third party short sale negotiator's track record and experience should be considered, in addition to the listing broker's short sale experience. It's not safe to assume that a third party short sale negotiator improves the probability of a successful sale, though many do, especially if the listing broker does not yet have an established track record for closing short sales.

More Short Sale Buying Worries

Since buyers and their brokers have more things to worry about if they offer for your short sale property vs. a non-short sale property, such as whether a deal will ever close, and if so how many months it will take, improve your chance of getting an offer in the first place by working with a short sale listing broker who closes a majority of their short sale transactions, or at least a listing broker who is willing to get competent help from a good third party negotiator.